EPF contribution rate reduce from 11% to 8%

Employee's EPF contribution Rate reduce from 11% to 8%, effective from Jan 2009 wage for a period of two years.

what do you think? Good or bad?

According to the Deputy Prime Minister and Finance Minister YAB Datuk Seri Najib Tun Abdul Razak, the objective of this move is to help to increase the buying power to support domestic consumption and to sustain the current economic outlook.Is this mean to ask Malaysian to saving lesser and spend more money? But this statement is contradict to the 'advice' from our 'lovely' Prime Minister who ask Malaysian to keep more money, change the life style and spend wisely to face the current economy.

We had heard a lot of news from media about the EPF is not enough to suport the living after retired. Now the govenrment implement this reduction, will it cause more people will get suffer after retired?

According to EPF, start from Jan 2009, this reduction will implement automatically. For members who wish to maintain the contrubution rate at 11%, you may need to fill up a form 'KWSP 17A (AHL). Once completed, submit the form to your employers for submission to EPF.

You may download this form from EPF website from 1 Dec 08 onwards.

So you want to maintain or reduce the rate ? Please think wisely. :)