Malaysia Has One Of The World’s Highest EPF Rates, Lower-Income Workers Are Still Retiring Poor

Former EPF chief executive Shahril Ridza Ridzuan has proposed raising employer EPF contributions to 15% or 16% for workers earning below RM5,000 - while cutting the rate to as low as 4% for high earners. His core argument: Malaysia's retirement savings problem is not a contribution rate problem. It is…

The Rakyat Post Jake Lim · News & blogs · 1 hr ago

Key takeaways

Malaysia has one of the world's highest EPF contribution rates, but lower-income workers still struggle to retire with dignity.

EPF contribution rate for workers earning below RM5,000 is 13%, with a proposal to increase to 15-16%.
Employers contribute 12% for salaries above RM5,000.
Gig platforms do not contribute to their workers' EPF savings, giving them a cost advantage over traditional businesses.
Shahril Ridza Ridzuan suggests a progressive wage policy for employer EPF rates, with higher rates for lower earners.

Summarised automatically by AI from the original article by The Rakyat Post. AI can make mistakes, so check the original for details.

Subscribe to our FREE Newsletter, or Telegram and WhatsApp channels for the latest stories and updates.

Former Employees Provident Fund (EPF) chief executive officer Tan Sri Shahril Ridza Ridzuan has proposed that employers contribute 15% or 16% to the EPF of workers earning below RM5,000 a month.

He said employers could pay a much lower rate for higher earners to offset this.

Shahril, who is now Axiata Group Berhad’s chairman, made the remarks at EPF’s International Social Wellbeing Conference 2026 in Kuala Lumpur on 30 September.

He was responding to a question on how lower-income and informal workers can retire with dignity.

Read the full story on The Rakyat Post That's the opening of the story. The full piece is published by The Rakyat Post.

Continue reading ↗

Story details

Published: October 5, 2026 at 3:12 AM UTC
By: Jake Lim
Section: Malaysia
Format: Article
Original: therakyatpost.com ↗

Topics

Related reporting

6 stories on this topic from 4 sources, oldest first.

Oct 1, 3:30 AM UTC
CodeBlue Sarawakian Bidayuh Suffer Highest Rates Of Nasopharyngeal Cancer Worldwide: Experts
Oct 1, 10:14 AM UTC
Malay Mail Bursa Malaysia ends lower, KLCI slides 1.26pc on cautious sentiment
Oct 2, 5:46 AM UTC
Bernama World : Malaysia-Vietnam Business Ties Can Bolster Supply Chains, Boost Intra-ASEAN Trade, Says MATRADE
Oct 3, 2:25 AM UTC
Malay Mail ‘I want it all!’ Malaysia squash star Ng Eain Yow targets world No. 1, world title and Olympic gold after Asian Games double
Oct 3, 10:50 PM UTC
Bernama World : Pakistan To Export Additional 70,000 Tonnes Of Rice To Malaysia
Oct 5, 3:12 AM UTC
The Rakyat Post Malaysia Has One Of The World’s Highest EPF Rates, Lower-Income Workers Are Still Retiring Poor (this story)

Malaysia Has One Of The World’s Highest EPF Rates, Lower-Income Workers Are Still Retiring Poor

Key takeaways

Story details

Related reporting

More from The Rakyat Post

Girl, 16, Found Dying In School Hall By Grandmother; Three Classmates Arrested For Murder

F1’s Malaysia Farce: The Rain Broke The Software, But A 20-Minute Delay Fixed It

Sepang’s Water Bottle Rule Changed by The Gate, Then the Taps Broke, And Then Bins Overflowed

McLaren Posted Batu Caves and Some Malaysians Asked If They Meant Calcutta

[Watch] Fake F1 Caps Sold For RM 20 Outside Sepang Gates, Stalls Shut Down After Viral Video

Sepang Said No Big Cameras At The F1, Then Some Gates Let Them In Anyway

More in Malaysia

Amid RM314m arrears row, Perkeso clarifies Zetrix never collected social security contributions on its behalf

World : Russian Watchdog Finds No Infections Among Irkutsk Antiplague Institute Staff