Assume monthly basic salary is RM4000
If your monthly EPF contribution is 11% ( RM440 ), taxable income = RM3560, income tax payable = RM77
If your monthly EPF contribution is 8% ( RM320 ), taxable income = RM3680, income tax payable = RM109
Conclusion : If you choose to contribute 8%, you will end up paying more income tax to the government, which will make the government richer.
Finance Minister Najib said this measure is meant to boost up the slow-down market, but from this example we see that the money does not go into the market.
Instead the money goes direct into the government's pocket through the greater amount of income tax that we will have to pay.
Obviously this measure does not help the market at all.
Contact your HR and tell them you opt to remain at 11% employee contribution...there may be a form to fill
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