Got a question for tax expert here. For income earner who is taxed at 26%, would u suggest the below move:

"An employee can arrange for his/her employer to contribute 19% to EPF by lowering his/her salary. For example,

Original salary RM10,000 a month, Employer’s EPF (12%) RM1,200.
Cost of hiring to employer = RM10,000 + RM1,200 = RM11,200

The employee can ask his/her employer to consider paying less basic salary but increase the employer's contribution to EPF as follows :-

Adjusted salary RM9,412 a month, Employer’s EPF (19%) RM1,788
Cost of hiring to employer = RM9,412 + RM1,788 = RM11,200

So there is no difference to the employer, but for the employee, his/her taxable income is RM588 (RM10,000 – RM9,412) less a month, which is RM7,056 a year. If his/her tax bracket is at 27%, the tax saving would be RM1,905.12 a year !"

Pick this up from a blogger site. Since this is park under employer epf contribution, my take is no impact on the employee 6k rebate? What would be other Pros and Cons? Is their any max limit for employer contribution to epf? How about bonus (getting less since lower basic) and future prospect if making career move?

Thanks for all input given!

This post has been edited by echho: May 13 2014, 11:42 PM