KUCHING, May 2: The proposal for employers to contribute 20 per cent to Employees Provident Fund (EPF) should be made on a voluntary basis instead of making it compulsory.
In stating this, Sarawak Housing and Real Estate Developers’ Association (SHEDA) Kuching branch chairman Dato Sim Kiang Chiok likened the move to a forced pay rise without any guarantee that productivity will be increased in return.
He also said the 20 per cent contribution would not help in the employee’s cash flow as any contribution can only be used at retirement age.
“The request of additional 7 per cent over the initial 13 per cent employers’ EPF contribution is quite substantial which will add about RM105 to RM280 based on a RM1,500 to RM4,000 monthly salary, respectively.
“This proposal will increase the cost of doing business which will translate to higher prices and inflation,” he said in a statement today.
At the same time, Sim further said instead of making it compulsory, the proposal can be considered by the ‘well-to-do employers’ as an incentive for their employees.
“The Federal government should allow the employer to contribute up to 20 per cent on voluntary basis instead of making it compulsory. This is to help the employer cope with rising cost of doing business, reduce wage versus price inflation and ensure our country remains competitive as an investment destination,” he added.
According to media reports, Uni Malaysia Labour Centre (Uni-MLC) has recently urged the Federal government to increase the employers’ EPF contribution to 20 per cent from the current 13 per cent for those earning RM4,000 and below. — DayakDaily