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I was repeating my routine life (jam all the way to office) this morning and heard in MY
FM's morning news about
KWSP is reducing employee's
EPF contribution from 11% to 8%. The very first thing I did once I reached office was
logon and surf about it. Couldn't see
anything in the Home Page of
KWSP (as usual). However, this is what I found -
The Star Online: EPF to adjust members'contributions to 8% from January. Have a read if you got the time.
Anyway, you have the option to choose to change it back to 11%. Just go and knock the
KWSP's door and let them know you want to remain as 11%. I did a simply calculation based on the average salary of a fresh graduate (it is way higher than me when I was a
freshie :< ) as below:
Note: calculations are excluded Tax and Socso reduction.11% BasedBasic Salary: RM2500
11%
EPF: RM275
Remaining: RM2225
8% BasedBasic Salary: RM2500
8%
EPF: RM200
Remaining: RM RM2300
Conclusion: You have extra RM75 to spend per month, but you lost RM31,500 in you saving if you work for another 35years(assume you have a fix salary for 10year...Yes I know that is very sad....
hehehehe).
So, you
judge yourself whether you want that extra amount per month now or you would like to have that extra RM31K when you are 55?
Want to know my choice? I still haven't decide when I press the Publish Button.