Friday, November 7, 2008

From 11% to 8%

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% Based
Basic Salary: RM2500
11% EPF: RM275
Remaining: RM2225

8% Based
Basic 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.


    JC said...

    Bet you already have your decision by now. Oh yea, I am Jazz by the way, can check your blogger list to confirm who I am. I've changed blog.

    Marvin Chong said...

    Well, if you don't need the extra 3% (like most of the Malaysian population), then it's better to apply to remain at 11%. As you calculated, better to put it into EPF as savings, which will grow with times.

    Was going to download and fill up the form. Luckily my Payroll Department was helpful, by adding my name to the group submission form, to send to KWSP in one go.

    Better make up your mind fast!

    Feng Shui Bazi expert said...

    I opt to remain at 11% :)

    Feng Shui Bazi expert said...

    I opt to remain at 11% :)