Recently Employee Profident Fund or better known to everyone as EPF announced that our employee contibution can be reduce from currently 11% to 8% starting from Jan 1 next year. At 8pm news just now, the latest update is that 8% reduction will be by default for everyone and those that wants the contribution cut to remains at 11% will have to submit an application form.
For me, this in short term or on the table it looks like a fat meat but in reality, the idea sucks. LOWERING the rate of employees’ contribution to the Employees Provident Fund (EPF) temporarily is part of the Government’s bag of tricks to rouse the economy. The idea is to boost private consumption by putting more money in workers’ pockets.
We should bear in mind that the lower EPF contribution rate simply means we have more money in our hands and not that our money is being taken away. It is up to us what we want to do with the extra cash. The EPF main aim is to help us save for our old days. Now with this reduction, it means we have more now but less for the future...I totally disagree with the move...when can our government be smarter and think before implementing something??? arghhhh
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