As a self-employee, I do not have an EPF account. I did find out about it and yes, we could open an account with EPF if we wanted to, with a minimum monthly contribution of RM50. Well, in Budget 2010, it has been proposed that now the self-employed can open an EPF account and we can contribute any amount to EPF according to our ability.
The Government will contribute 5% to our EPF contributions but it will be subjected to a maximum amount of RM60 per year for five years. This means that to maximize on this 5% contribution from the Government, the "ideal" contribution by the self-employed is just RM100 per month.
This is called the 1MALAYSIA Retirement Scheme and since this scheme is administered by the Employees’ Provident Fund (EPF), contributors who are self-employed will be able to withdraw their EPF contributions in one lump sum at the age of 55.
At this point, I am unsure if such contributors will be able to initiate a partial withdrawal at the age of 50. Also, I do not have any information on what happens to the 5% annual contribution by the Government after five years.
The Government will contribute 5% to our EPF contributions but it will be subjected to a maximum amount of RM60 per year for five years. This means that to maximize on this 5% contribution from the Government, the "ideal" contribution by the self-employed is just RM100 per month.
This is called the 1MALAYSIA Retirement Scheme and since this scheme is administered by the Employees’ Provident Fund (EPF), contributors who are self-employed will be able to withdraw their EPF contributions in one lump sum at the age of 55.
At this point, I am unsure if such contributors will be able to initiate a partial withdrawal at the age of 50. Also, I do not have any information on what happens to the 5% annual contribution by the Government after five years.
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