If the EPF scheme becomes unattractive for future generations, it may make them go towards finding careers that are 'non-EPFabble'. And such careers are usually hard to tax too !

My nieces and nephews think of such careers,....

Del

This post has been edited by boyboycute: Nov 13 2025, 10:10 AM

A scheme where you get "free" 12-13% from employers vs 0% by self employed are unattractive?

I won't say the 12-13% contribution from employers side are free since it's actually part of the pay. If they are not contributing to the EPF, it will be paid as your salary.

which company does not pay EPF? that's a red flag, no matter how much salary they are offering.

Self-contribution will always be there.


With today's net world and many disruptions happening all around, there will be careers that have not been included into the EPF Act.

sure if you are going for the unconventional path.

but don't forget with the flexibility, you don't get the job stability.

you may be replaced anytime, or the start up that you are working for can just go bust anytime.

at the end of the day, jobs with EPF are still the one to look out for, it shows the employers have skin in the game.

Thank you. I'm thinking like you are too,..... but, emm,... there is a little voice in the back of my mind that anything can happen in the world of today ! So, when I talk to my nieces and nephews, I don't discourage them doing this but I tell them my thots, good and bad. And I standby to help them if things don't go thru !

I guide my children to jobs with pension plans in the countries where they wished to thrive in.

Retirement contribution are mandatory all around the world. Because if given the choice, who doesn’t want to get higher pay (without retirement contribution).

Glad that EPF are mandatory in Malaysia, if it was optional I’m sure the % without EPF will be higher. No one wants to lock their money in until 55 years old.

Frankly,... if one knows how to manage money and can earn adequately, these schemes can be done away with.

Not really. When you negotiate salary, the employer does not tell you of since you getting extra 12%, i will pay you less. And when we talk about salary, we do not include EPF into the gross salary unlike Singapore which includes CPF contributions to artificially inflate the figures.

So it is 'free' because it does not cross your mind to add in that 12-13% when you negotiate salary. It's a cost to the company, but no company uses the 12% to reduce your wage demands.

When I negotiate pay package with expats, I upfront tell them there is no EPF (until recently la), but on the flip side they don't have to contribute 11% also so they get higher take home pay. I don't cost in the 12% to them because it's a loss on my part.


Self-contribution is not free. Plus, nothing stops an employed worker to both get EPF from employer and do self contribution.

For the bold part, there was one job offer that I got, which is a 2 years contract base, and because it is a contract, the employer told me if I don't want them to contribute the employer portion to my EPF account, they will pay the money as part of my salary - which is 115% from what is stated there. So we will not get paid less if we have the EPF, but rather if we are not taking the EPF part, we are actually getting the extra contribution as part of our salary. So yea, I would still calculate X + 12/13% as part of the salary, whether the 12/13% will be going to my EPF or not that will be another question.

we do not live in an ideal world...

systems are in place for a reason...

if everyone just behave and don't commit crimes, we don't need police, right?

should always try to get the employer to pay you the employer's contribution in the form of EPF contribution. It is tax free for you, the employee...
(so if at a high bracket like 25%, that saves you almosty 4% income tax based on gross salary)

EPF contribution is not free for employer la... The only reason you think it's free is because employer don't get to choose if they can opt out from EPF.

Some employers contribute up to 17.5% for EPF, of course you'll take that into consideration when you have multiple option (12% with higher salary or 17.5% with lower salary).

I want the schemes... cos these schemes usually come with special benefits...

like EPF's tax deduction... and creditor proof features... gov guarantee... etc

Can do online, then confirm it via thumb print on the EPF machine.

Can also add new nominees online n confirm at EPF machines too?

Thanks. Still considered have to be done at a EPF office.... For safety purpose... Don't really want scammers to change anything off site.

It subjected to income tax if the employer portion goes into salary.