KUALA LUMPUR – October 3, 2018: Two of the country’s largest trade unions are against the government’s proposal to increase the retirement age, deeming it as an impractical solution to the reason given, which was to improving the savings of retirees.
Malaysian Trade Union Congress (MTUC) president Datuk Abdul Halim Mansor thinks that it’s impractical to review the retirement age if the only reason is concern over the insufficient savings by workers under the Employees’ Provident Fund.
“If EPF is the main concern, there are other solutions and options. One is that the government should research to determine if the rate of statutory contribution from employers is relevant by today’s standard,” said Halim.
This morning Human Resources Minister M. Kula Segaran said the government was looking into the possibility of increasing the retirement age from the current 60.
The Congress of Union of Employees in the Public and Civil Services (Cuepecs) is also against the idea.
Its president Datuk Azih Muda also suggested for an increase in the employer’s contribution to the EPF, adding that the last time there was an increase was one per cent in 2012 to bring the total to 13 per cent.
“The government could perhaps consider tweaking the EPF contribution system. Now employees only contribute 11 per cent of gross salary which does not include overtime,” said Halim.
Azih also would like the government to review the minimum wage if it is really serious in wanting to increase savings by employees in their EPF accounts.
But Malaysian Employers Federation executive director Datuk Shamsudin Baradan said that one of the problems that may arise from an increase in retirement age is that new graduates may find it harder to get jobs.