EPF: In-depth study on salaries, wages needed

BANGI: Taking into account the current cost of living, there is a need for an in-depth study on the salaries and wages of employees, Employees Provident Fund (EPF) chief executive officer Tunku Alizakri Alias said.

The emphasis, he said, should not be on the percentage of contribution to EPF, but the wage levels of employees, which was not up to mark.

“The 11 and 12 per cent contribution by employees and employers are the fifth highest in the world and there are implications if they are increased.

“The increase will impact employees in terms of their takehome pay, and for employers, the cost of doing business, and these are sensitive issues.

“I wouldn’t recommend increasing the contributions hastily. More studies should be done before such an action is taken,” he said after the launch of the “Belanjawanku” expenditure guide here yesterday.

The guide provides estimations of minimum monthly expenditures on various baskets of goods and services for different households residing in the Klang Valley that will allow Malaysians to attain a reasonable and acceptable standard of living or wellbeing.

It also provides a comprehensive guideline encompassing allocations for basic necessities, social participation, recommended savings, loan repayment and emergencies.

“The underlying motivation for developing Belanjawanku is the problem of low financial literacy, rising cost of living and over-indebtedness among Malaysians.

“The guide will be adopted by Retirement Advisory Services officers in providing members with financial guidance and advice, complementing what is essentially a flagship EPF service.

“We expect the guide to form the bedrock of the society’s strong financial wellbeing, leading to a better quality life in the long term,” said Alizakri.