EPF 8% or 11%, Which One You Should Choose?
During tabling Budget 2016 on last January, Prime Minister Najib Razak has announced a reduction in employees’ contributions to the Employees Provident Fund (EPF) as much as 3%.
This means that previous contributions of 11% reduced to 8%. However, employees can choose either to follow 8% or change back to 11% rates credited into their EPF account on a monthly basis.
The main objectives of this is to stimulate growth by increase people monthly incomes and increase consumer spending.
But is there any difference of two figures affect in the daily lives of every individual to work? Is it also has an effect on an individual future investment?
If you are a person who needs more money for now, contributions may be made only by 8%. But if you choose to get more money during retirement, you can fill out the form to maintain the contribution of 11%. It depends on yourself.
Less assure, there is no change in the statutory contribution rate for employers.