Malaysians Working Abroad Eligible to Contribute to EPF

January 6, 20174:52 pm1370 views

Malaysians working abroad can make contributions to the Employees Provident Fund (EPF) via the 1Malaysia Retirement Savings Scheme (SP1M).

Johor EPF branch Retirement Advisory Service (RAS) officer Faizal Abu Al-Ashari said those below 55 years of age, can register as EPF members to make savings until they reach retirement, The Star Malaysia reports.

This explanation clarified the long-held perception among Malaysians working abroad that they are not eligible to make savings with EPF. The SP1M was introduced with intent to encourage the self-employed and those without fixed income to contribute voluntarily based on their capability, which includes Malaysians working abroad as well.

EPF members can make contributions between RM50 and RM60,000 a year at any time according to their ability and will receive annual dividends based on current rate, just like other contributors. Those interested to enhance their retirement savings can register at the EPF office by filling out a special form and payment can be made at the counter or via agents such as Public Bank, RHB Bank, Bank Simpanan Nasional, May Bank or also online.

Besides SP1M, those eligible can make personal savings deposits via voluntary contribution. RAS is the first-of-its kind initiative in South East Asia under EPF’s Social Security Excellence and Strategic Plan 2013-2017.

The Retirement Advisory Service (RAS) was first introduced in 2014 to raise awareness on the important of retirement planning, offer advice and guidance to EPF members for free. Since its launch until August, close to 18,000 EPF members sought advice from RAS face-to-face at branches.

In 2015, 65 percent of EPF members aged 54 years with savings of RM50,000 and below spent their EPF savings within three to five years. On a separate note, EPF announced earlier this year that employees can opt for an 8 percent EPF savings cut, instead of the 11 percent that has been in place for decades.

“Johor RAS branch was officially opened in October last year. A total of 1,500 members have come to our branch for advice about planning their savings. The customers are of various ages, races and background. They include civil servants, private sector employees, factory workers and the self-employed. They were very satisfied and left with better understanding of financial planning for retirement,” added Faizal, Bernama reports.

 

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