The 9% monthly contribution rate of employee provident fund will end on June 30!
Finance Minister Tunku Zafrul said last year when he released the 2022 Budget that the 9% contribution rate of the employee provident fund was extended for half a year from December 31, 2021 to June 30, 2022. This also means that if the government does not extend the 9% contribution rate, workers will be required to pay 11% of the provident fund every month from July 2022.
It is generally expected that the domestic economic activities have been fully opened, but the domestic inflation continues to deteriorate, and it is unlikely that the government will extend the 9% payment rate again.
So what is the difference between the 9% and 11% contribution rates? Here is an example of a monthly salary of RM4,000. At the 9% contribution rate, you need to pay RM360 per month, and at the 11% EPF contribution rate, you need to pay RM440 per month, the difference is RM80.
Benefit of 11% EPF contribution rate : When you retire, you will have more pension. Enjoy higher EPF dividends. Not only that, but members also receive higher personal income tax relief.
Disadvantage of 11% EPF contribution rate : EPF deposits can only be withdrawn in full after age 55. If you want to apply before the age of 55, you must apply to the relevant authorities.
