30 January 2016

[EPF Revised 2016 Contribution] 8% or 11% better ???

One of the much talked about topic of the day when our PM revising the 2016 Budget again just after 3 months from tabling it late last year, the EPF contribution of employees will be reduced by 3% to 8% (from current 11%).


The new revised rate which will take effect for the period between March 2016 till December 2017, was to put more money into your own pocket, and hoping that you will spend it to rejuvenate the half dead economy. By doing so, you're contributing to the economy and back to the coffer of government via GST.


What do you think ?
Sounds good, if you really want to loosen abit your cash flow. Anyway, it won't make a big difference either. For example, if you're earning RM3,000 salary monthly, the 3% extra pocket money was RM90 only. Spending it on a lavish dinner?

"However, from tax planning perspective, we must not forget that our EPF contribution entitles you for up to Rm6,000 tax relief (EPF + Life Insurance premium). In other words, lesser EPF contributions means lesser tax relief for you," said Alex Yeoh, a licensed financial planner.

In the end, you maybe will need to pay more tax to the government. It was like a sure win measure by the government.

Meanwhile, it will affects all unit trust consultants whom focusing their sales on EPF's members investment scheme. Lesser EPF money means lesser amount can be withdrawn for such purpose, resulting lesser sales amount for consultants.

Can I maintain the current 11% contribution rate ?

Yes, you may do so by filling up the KWSP17A (khas 2016) form, which is the "Notice to Contribute more than statutory rate" and submit to respective employers, who will then forward it to any EPF branches. The form can be download from EPF website starting 2nd Feb 2016.

4 comments:

  1. Such a good stock related sites very nice to read please follow us at :-free market newsletter and best stock picks

    ReplyDelete
  2. The foreign exchange market is the "place" where currencies are traded. Currencies are important to most people around the world, whether they realize it or not, because currencies need to be exchanged in order to conduct foreign trade and business. If you are living in the U.S. and want to buy cheese from France, either you or the company that you buy the cheese from has to pay the French for the cheese in .This means that the U.S. importer would have to exchange Usa Forex Signals the equivalent value of U.S. dollars (USD) into euros. The same goes for traveling. A French tourist in Egypt can't pay in euros to see the pyramids because it's not the locally accepted currency. As such, the tourist has to exchange the euros for the local currency, in this case the Egyptian pound, at the current exchange rate.

    ReplyDelete
  3. Some forex trading signals are high volume scalpers, calling many trades in a day aiming to profit a handful of pips on each. Others only call a few trades a day, aiming to profit 20 - 80 pips on each single trade.To know more visit my website Hot Forex Signals

    ReplyDelete
  4. Excellent blog liked it very much , you can go to our blog website which is Kobian Fraud to gather some knowledge regarding finance and to be aware of fraud

    ReplyDelete

Finance Malaysia Blog appreciates your comment. Cheers!

Related Posts Plugin for WordPress, Blogger...