BETONG: The government needs to provide other incentives to employers if they want the latter to increase the contribution rate of the Employees Provident Fund (EPF) to 20 per cent compared to the current 13 per cent.
This was pointed out by Saribas Muslim Citizens Association (Perwaris) chairman Dr Bolhan Budeng.
According to him, the proposed increase in the contribution of the employer’s share shows the government’s concern for employees and guarantees the sustainability of their lives after retirement.
“However, the government should provide other incentives to employers in order to reduce operating costs from other angles.
“This can benefit both parties, the employees and employers,” Bolhan told Suara Sarawak yesterday.
He explained that if it was agreed to later on, its implementation would require a control mechanism for employers.
“This is important so that employers do not act unfairly, for example by reducing employees’ wages or not giving annual bonuses and other remunerations.
“Because as claimed by many parties, raising the contribution rate will increase the burden on employers as they have to pay more operating costs.
“Therefore, every policy change in dealing with social problems needs to have a new method in its implementation so that both parties benefit,” he said.
Bolhan warned that if they were not addressed, the defects that occurred could affect the sustainability of human development.
Recently, Prime Minister Datuk Seri Anwar Ibrahim stated that the unity government would discuss the proposal that the EPF contribution rate for the employer’s share be increased to 20 per cent.
