KUALA LUMPUR, May 30 — Newly appointed Human Resources Ministry secretary-general Datuk Seri Zaini Ujang said the the proposal for employers to contribute 20 per cent towards the Employees Provident Fund (EPF) is being looked into as its implementation involves many procedures.
He said the ministry will discuss the suggestion and give comprehensive consideration to achieve an all-inclusive approach, The Star reported this morning.
“(If implemented, we) need to change the Acts and there are other issues (to tackle).
“We not only have EPF but also Socso (Social Security Organisation) contributions.
“We want to do it through an overall approach later,” Zaini reportedly said.
Employees currently contribute 11 per cent of their monthly salary to the EPF, while employers contribute another 12 per cent or 13 per cent of their employees’ salary in accordance to the statutory rate.
As for Socso, the contribution rate is 1.75 per cent from an employer’s contribution and 0.5 per cent from an employee’s monthly wages.
The rates are provided for under the Employees Provident Fund Act 1991 and Employees’ Social Security Act 1969.
On May 2, Prime Minister Datuk Seri Anwar Ibrahim noted calls by employees for employers for a 20 per cent contribution towards the EPF and said it would be brought to the Cabinet for discussion.
