Budget 2023: EPF voluntary contribution limit increases to RM100,000 yearly

Tengku Zafrul Aziz presenting Budget 2023 in Parliament today. (Oct 7, 2023) Photo credit: Penerangan Facebook

By Karen Bong

KUCHING, Oct 7: Employees Provident Fund (EPF) contributors would be allowed to make voluntary contributions up to RM100,000 yearly, up from RM60,000, in addition to their statutory savings.

In today’s Budget 2023 announcement in Parliament, Finance Ministry Datuk Seri Tengku Zafrul Abdul Aziz said this is to further encourage voluntary contribution given the importance of building savings for old age.

“The government will also expand the scope of tax relief for life insurance premiums or life Takaful contributions to cover voluntary contributions to EPF up to RM3,000,” he said.

To reduce the burden of self-employed persons, Tengku Zafrul said the government will bear 80 per cent of Socso contributions of the group of workers including food deliverers, farmers, fishermen, Finas artistes and hawkers.

“This initiative will provide RM150 million to extend the benefit to include taxi drivers and gig workers.

“Next year, the government will also be making Socso’s Self-Employed Social Security Scheme (SKSPS) contributions mandatory for all self-employed sectors, especially the high risk sectors, in stages,” he added.

Tengku Zafrul said the i-Saraan initiative will be extended for 2023 and improved by increasing the matching contribution from RM250 to RM300.

“With an allocation of RM30 million, this initiative is expected to benefit more than 100,000 contributors,” he said.

To appreciate the contribution of housewives, he said the government intends to extend the Kasih Suri Keluarga Malaysia programme for 2023 and strengthen this programme through additional protection under the Socso scheme.

With that, housewives who make a minimum EPF contribution of RM60 per year will receive an additional matching incentive from the government worth up to RM600 per year including RM480 in EPF savings and RM120 in Socso Scheme contributions.

“This program will benefit 200,000 housewives with a government contribution of over RM120 million,” he said. — DayakDaily