SUPP man suggests careful consideration for increase in employers’ contribution to EPF

Dato Sim Kiang Chiok

KUCHING (May 3): The proposal to increase employers’ contribution to the Employees Provident Fund (EPF) to 20 per cent should be made on a voluntary basis instead of being mandatory, said Sarawak United People’s Party (SUPP) member Dato Sim Kiang Chiok.

Sim, who is the party’s Stakan chairman, cautioned that the federal government must exercise careful consideration on the proposal as it will cause an increase in the cost of doing business without the expected increase in productivity from the employees.

“This increase in contribution is not productive and does not help in the employee’s cash flow as any contribution can only be used at retirement age,” he said in a statement.

Sim said the additional seven per cent in EPF contribution by the employers from the existing 13 per cent might translate to about RM105 to RM280 in additional payment, based on monthly salary of RM1,500 and RM4,000 respectively.

He added the increase in cost of doing business will also add to the present issue of inflation.

“Thus, the request can be considered by the ‘well-to-do’ employers as an incentive for their employees and the government should allow the employer to contribute up to 20 per cent on voluntary basis instead of making it compulsory,” said Sim.

Sim is also Sarawak Housing and Real Estate Developers’ Association (Sheda) Kuching branch chairman.

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