‘Mandatory coverage expansion will cost bosses RM3.1bil’

'Mandatory coverage expansion will cost bosses RM3.1bil'

‘Mandatory coverage expansion will cost bosses RM3.1bil’

KUALA LUMPUR: The Malaysian Employers Federation (MEF) plans to hold a discussion with the Employees Provident Fund (EPF) about the latter’s proposal to expand the mandatory coverage for workers.

Its president, Datuk Dr Syed Hussain Syed Husman, said it would also discuss the matter with its members, as it could cost employers an additional RM3.182 billion per year.

He said most employers would not be in the financial position to absorb the additional cost.

Moreover, the gig economy absorbed nearly four million people due to its business model, Syed Hussain said.

“As such, any fiddling with the existing business model may kill off the gig economy and will have adverse consequences for the self-employed to generate income.”

The government also encouraged informal sector workers to contribute to EPF a minimum of RM50 per month via its i-Saraan voluntary contribution programme, he said.

MEF believed i-Saraan could provide a platform for the self-employed to save for their old age and as such, it should be maintained and enhanced further.

Under the programme, EPF members would receive a 15 per cent government contribution (a maximum of RM250 per year, on top of their contributions).

Syed Hussain said the government should carry out an awareness campaign to encourage self-employed individuals to join it.

Foreign workers could also voluntarily contribute to EPF, he added, with the contribution

rate reduced to nine per cent (from 11 per cent) for 12 months from Jan 1.

‘Mandatory coverage expansion will cost bosses RM3.1bil’

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