Sunday, November 23, 2008

Behind scene of EPF Contribution 11% to 8%. 公积金调整背后的隐忧。

For those who are currently working, you may want to see this. I got this information from the email i received.


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 wee 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.

假设 薪水RM4000

- 选择 EPF 11%也就是RM440taxable income RM3560,所以tax RM77
选择 EPF 8%也就是RM320 taxable income RM3680,所以tax RM109


That is why I am waiting for the form to be filled to change the 8% EPF contribution back to 11%. 有杀过没放过。。哈!

Please share this information with your friends, and kindly correct me if there is any mis-calculation above. 我可不是数学精算家,请多多指教~


With Love,
elims Chuang


ProAlien said...

btw, the EPF relife can deduct up to 6k only (1 year)

if you were to set contribution of 11% of your salary.

Total Salary x 11% = 6000
Total salary = 54546
Salary per month = 4546
(ignore the relief, deductible expenses, other classes of income)

Which mean, if your salary is higher than RM4546 and you still set 11%, then your income tax payable will no longer to reduce.

Another aspect you have to consider is value for money. If you put your money into EPF, you cannot use your money for the time being. How much dividend government give??

Have a look on this

Is it worth you put your money into government?? How about put it into some investment?

❤oms❤Ψ said...


Anonymous said...

hehe, based on taxation subject i study in utm on 2006, the way u calculate is only for those who contribute total CPF with less than rm5000/p.a. once u have cap at first rm5000, government will still tax on your total income regardless u have contribute to CPF or not. rm5000 is total cpf and/or life insurance contribution. I m not sure msia has amendment for total rm5000 or not. i m in sg now. pls check kwsp web site. haha

Anonymous said...

investment is not guaranteed for return but gov did give around 5% return which consider not bad...haha

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