GOVT SUGGESTS A TEMPORARY 3 PCT CUT ON EMPLOYEE'S EPF CONTRIBUTION

KUALA LUMPUR, Nov 4 (Bernama) -- In a move to put more disposable income in
workers' pockets, the government will give workers the option to reduce their
contribution to the Employees Provident Fund (EPF) by three percent for two
years beginning January 1, next year, Finance Minister Najib Razak said.

Currently, employers contribute 12 percent to EPF while the employees
contribute 11 percent of their salary to the national savings fund.

"With the reduction, the level of contribution is still at a very
reasonable
20 percent, with employers contributing 12 percent and employees 8.0 percent. A
person with a salary of RM2,000 a month will get RM60 extra in disposable
income, while someone earning RM6,000 will get an additional disposable income
of RM180 a month," Najib said when winding up the debate on the 2009 Budget.
(US$1=RM3.50)

Should all the contributors volunteer to reduce their EPF contribution, the
amount involved will come up to RM4.8 billion a year, he said.

Assuming that only 50 percent of the contributors take up this option, the
level of private consumption spending will increase to RM2.4 billion, he
added.
-- BERNAMA