EPF Contribution Decreased to 8% From 11%
Recently, the government had reduced our EPF contribution from 11% to 8% with the reason that this is to give everyone more money to spend. Is this really a good idea?
For me, as an employee it doesn't benefit anything to me at all. Why?
1. By decreasing the EPF contribution, this would means that I'm increasing my income tax amount. So, end up, this doesn't do me any good at all but to pay for more taxes.
2. 3% deduction would means that my mental would play the song "I have extra money to spend". I can survive before the deduction and why I need the extra money to spend?
3. With the recent economy crisis, reducing the EPF would means increasing the country money but making the people to be less affordable due to higher income tax amount.
4. EPF money is for the old time. Then, does this mean when I get old, I don't need much money to spend?
I will definitely choose to stick with 11% EPF contribution rather than the 8%. So, I had been googling on how I can apply to maintain on 11%. So for those who wants to maintain the 11% EPF contribution, you need to fill in the Form KWSP 17A (AHL) and submit them to your employer (starting on 1-Dec-08). Make sure you ask your HR about this, else your EPF will be reduce to 8% automatically from Jan'09 onward!! Also, make sure you receive the letter form KWSP about your total EPF contribution (to prevent yourself from being cheated by your employer).
For more information about this, you can click on the link below:
http://thestar.com.my/news/story.asp?file=/2008/11/7/nation/2482669&sec=nation
http://www.kwsp.gov.my/index.php?ch=p2news&pg=bm_p2news_press&ac=2734
For me, as an employee it doesn't benefit anything to me at all. Why?
1. By decreasing the EPF contribution, this would means that I'm increasing my income tax amount. So, end up, this doesn't do me any good at all but to pay for more taxes.
2. 3% deduction would means that my mental would play the song "I have extra money to spend". I can survive before the deduction and why I need the extra money to spend?
3. With the recent economy crisis, reducing the EPF would means increasing the country money but making the people to be less affordable due to higher income tax amount.
4. EPF money is for the old time. Then, does this mean when I get old, I don't need much money to spend?
I will definitely choose to stick with 11% EPF contribution rather than the 8%. So, I had been googling on how I can apply to maintain on 11%. So for those who wants to maintain the 11% EPF contribution, you need to fill in the Form KWSP 17A (AHL) and submit them to your employer (starting on 1-Dec-08). Make sure you ask your HR about this, else your EPF will be reduce to 8% automatically from Jan'09 onward!! Also, make sure you receive the letter form KWSP about your total EPF contribution (to prevent yourself from being cheated by your employer).
For more information about this, you can click on the link below:
http://thestar.com.my/news/story.asp?file=/2008/11/7/nation/2482669&sec=nation
http://www.kwsp.gov.my/index.php?ch=p2news&pg=bm_p2news_press&ac=2734
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