Please enable JavaScript.
Coggle requires JavaScript to display documents.
SOCSO (b)
EPF - Coggle Diagram
SOCSO (b)
EPF
Intro
- compulsory savings scheme
- provide security for old age retirement
- supplementary benefits to member
- Employee Provident Fund Act 1991
- administered by EPF, M'sia
Fx
- Receive and recover contributions
- Maintain members and employers acc
3. Invest funds
- Return the savings to members
- various withdrawal options
Membership
- M'sians reached age of 16
- employed under contract of service
- expatriates & foreign workers were not required to contribute
- Now, they can contribute but not compulsory
- M'sians citizens
- Non-M'sians citizens, but permanent residents of M'sia
- Non-M'sians citizens but have elected to contribute before 1 Augusut 1998
- Private sector employees
- Non-pensionable public sector employees
- Voluntary contributors
- Has to register within 7 days of employment
- Failure (employer) not exceeding RM10,000 / prison < 3 years
Types
Self
Self-contribution
- Voluntary participation who not covered under EPF act
i-saraan
- Self employed
- Not earn regular income to make voluntary contributions of retirement
- 15% og gov contribution (max RM250/year)
i-suri
- ensure wellbeing of housewives
- below 60 years old
- min contribution is RM5 per month / RM60 per annum
Top-up saving contribution
- Voluntarily make additional to family members EPF acc
-
Contributions
Employer
- 13% for less than RM5,000
- 12% for more than RM5,000
Employee
- 8% (optional 11%)
Company must remit within 15th day of the following month
Acc 1 (70% of savings) + Acc 2 (30% of savings)
- Employee's contribution +
- Employer's contribution +
- Dividend -
- Pre-retirement withdrawals =
Retirement Savings
EPF Withdrawal Scheme
- Retirement
- attaining age 55 years withdrawal
- attaining age 60 years withdrawal
- Pre-retirement
- attaining age of retirement withdrawal (50)
- to build/ purchase house
- housing loan monthly
- to reduce/ redeem housing loan
- PR1MA
- health
- education
- Member's Investment Scheme
- member's saving investment withdrawal
- Other full withdrawal
- Incapacitation
- Leaving the country
- Pensionable employees withdrawal & Optional retirement withdrawal
- death withdrawal
- Other withdrawals
- w/d of savings more than 1 million
- perform hajj
Offences & Penalties
- 41(1) fails to register with the Board within 7 days from the date liable to contribute [prison < 3 years/ fine < RM10,000] or both
Trends & Issues
- Limited coverage to working population
- Issues on i-Saraan
- The dividend rate of EPF