Budget 2027: EPF backs RM2,000 minimum wage, automatic membership from age 18

KUALA LUMPUR - The Malaysian government's Budget 2027 announcement includes a proposed minimum wage of RM2,000, a move that could boost workers' livelihoods and enhance the adequacy of retirement savings for Employees Provident Fund (EPF) members, according to the EPF's chief executive officer, Ahmad Zulqarnain Onn. Zulqarnain emphasized that this wage increase is also a significant step towards ensuring a more equitable distribution of national income benefits.

The EPF chief expressed support for the initiative to raise the living wage threshold for government-linked investment companies (GLICs) to RM3,400, vowing full implementation of this plan.

In another development, EPF announced that it will automatically enroll Malaysian citizens as members upon reaching the age of 18, as part of the i-Saraan Plus programme. This expansion aims to provide increased access to retirement savings for the younger population. Additionally, the budget maintains the i-E-mas scheme for e-hailing and p-hailing drivers, who will continue to be eligible for a 20% government matching incentive.

This incentive is subject to an annual cap of RM600 and a lifetime cap of RM6,000, all paid out up until the national minimum retirement age.

Zulqarnain also highlighted EPF's ongoing encouragement for members to plan their retirement savings even after retirement. Through the i-Emas programme, EPF members can choose to receive monthly payouts from their Age 55 and Age 60 withdrawals instead of making a complete withdrawal. This approach allows retained savings to continue earning annual dividends, thereby extending the retirement savings period and providing post-retirement income.