When Finance Minister announced recently that members (EPF) could reduce their monthly contributions from 11% to 8%, I thought it is optional. To me, the reduction does not make any financial sense, thus I would encourage my employees to continue with their 11% contribution.
It thus came as a surprise to me when I read the press release by KWSP today:
reduction of the employees contribution from 11% to 8% would be made automatically for the ease of members and to facilitate implementation measures.
Members who wish to maintain their 11% contribution rate can still do so by filling up Form KWSP 17A (AHL) and handing it to their employers for submission to EPF.
That literally means KWSP is forcing it on us. Who would want to go through the hassle?
Can anyone tell those dumb fella to revert to the old condition?
I agree… people aren’t saving as much as they should for their retirement. And I guess a lot of this extra 3% income will be spent on non-essential items (which is the idea behind this anyway). Anyway… 3% of my salary cannot even buy 1 pizza meal la haha
Should be opt-in rather than opt-out. Sigh. Another task on my endless to-do list.
yenjai,
We could tell them if we have a change of government!:D