Ex-EPF CEO proposes employers pay higher EPF contributions for low-wage workers while reducing contributions for high-income staff

Former EPF CEO Tan Sri Shahril Ridza Ridzuan has proposed a solution to help lower-salary workers save more for retirement through the Employees Provident Fund (EPF). He suggested that employers pay a higher contribution rate for workers earning below a certain threshold, with a lower contribution rate for workers earning above the threshold.

For example, if an employee earns below RM5,000, the employer could contribute 15-16% of their salary to their EPF savings, while for employees earning above RM10,000, the employer contribution could be reduced to 4%. Shahril believes this progressive approach would help lower-income workers build their retirement savings faster.

He emphasized the importance of progressive wage policies to ensure workers receive a fair share of the economy and that the minimum wage keeps increasing. Shahril also suggested that the debate should focus on improving wealth inequality in Malaysia and a better transfer of wealth between capital owners and workers. He proposed imposing a revenue tax on gig platforms and using the raised funds to provide EPF contributions for gig workers, addressing their "invisible tax" situation.