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

KUALA LUMPUR, Oct 10 — EPF CEO Ahmad Zulqarnain Onn stated that the proposed RM2,000 minimum wage increase would positively impact workers' livelihoods and contribute to stronger retirement savings for EPF members. This move represents a significant step towards ensuring that the advantages of economic growth are more evenly distributed.

Zulqarnain also expressed EPF's support for raising the living wage threshold for government-linked investment companies to RM3,400 and affirmed their commitment to implementing this adjustment.

In response to the Budget 2027 presented in Parliament, the EPF chief emphasized that the upcoming changes would broaden access to retirement savings by automatically enrolling all Malaysian citizens as EPF members upon turning 18. He further highlighted the continuation of the i-Saraan Plus programme, which offers a 20% government matching incentive for e-hailing and p-hailing drivers.

The incentive is subject to an annual cap of RM600 and a lifetime maximum of RM6,000, up until the national retirement age. Lastly, Zulqarnain reassured members about the option to receive monthly payments through i-Emas after opting for withdrawals at age 55 and 60, allowing their savings to continue earning dividends and providing additional income during their post-retirement years.