288,000 EPF MEMBERS REGISTER TO CONTRIBUTE ABOVE THE STATUTORY 11 PCT EMPLOYEE RATE - LIM

KUALA LUMPUR, Dec 18 (Bernama) -- A total of 288,000 members of the Employees Provident Fund (EPF) have registered to contribute more than the statutory rate of 11 per cent for employee contributions as of October 2024.

Deputy Finance Minister Lim Hui Ying noted that contributors can increase their savings through voluntary contributions, subject to an annual contribution limit of RM100,000 per year starting from June 1, 2023.

"This voluntary contribution can be made at any time via mobile applications, internet banking, bank counter agents, and EPF counters," she said during today's question-and-answer session in the Dewan Negara.

She was responding to a supplementary question from Roderick Wong Siew Lead regarding the initiatives taken by EPF to help contributors increase their retirement savings.

Lim added that one million EPF contributors had made voluntary contributions as of Oct 31, amounting to RM11.16 billion.

"The government, through the iSaraan programme, has provided matching contributions of up to RM500 per year. This incentive is subject to a maximum entitlement of RM5,000 for a lifetime for an individual," said Lim.

She also highlighted that the EPF allows individuals to register and contribute voluntarily from the age of 14, encouraging the younger generation to develop a habit of long-term savings and benefit from dividend compounding.

Lim also reported that 4.1 million representing 31.6 per cent of the total 13.1 million EPF members under the age of 55, have opted to allocate funds into the EPF Flexible Account (Account 3) with a total transfer of RM14.5 billion.

"As of Nov 27, 2024, four million members, or 30.5 per cent of the total number of members under 55, have made withdrawals through Account 3, amounting to RM11.6 billion. The remaining balance in Account 3 stands at RM7.4 billion as of November 2024," she added.

-- BERNAMA