An average worker who works until 55 years old, spanning an approximate period of 30 years will accumulate about RM120,000 (US$38,900) saving in his EPF account.
The figure was tabled by the Deputy Finance Minister Datuk Seri Ahmad Husni Hanadzlah in the Dewan Negara yesterday.
Rough numbers had been used to come up with the approximation, and while RM120,000 would enable the retiree to meet his or her basic expenses, more should be done to safeguard one’s future expenditure.
EPF (Employee Provident Fund) contribution is mandatory for workers employed by organization which do not extend pension scheme for its workers. Currently, the min rate of monthly contribution is 11% for the employee and 12% for the employer.
Employee has option to increase his statutory contribution by making an arrangement with the EPF, while a number of employers in the country have been offering higher EPF contribution (between 13 to 15%) from their end as part of their effort to attract local talents working with them.
The mandatory EPF contribution is not applicable for foreign workers employed in Malaysia.