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Government Still Reviewing EPF Scheme for Civil Servants

KUALA LUMPUR — The government has yet to finalise plans to introduce Employees Provident Fund (EPF) contributions for civil servants, with several aspects of the proposal still under review. Minister in the Prime Minister’s Department (Federal Territories) Datuk Seri Dr Zaliha Mustafa said the evaluation includes the possibility of implementing monthly post-retirement payments.

“The implementation of EPF contributions for civil servants is still being studied. This includes determining how much may be withdrawn and the amount that must remain in the retiree’s account,” Zaliha explained in a written parliamentary reply. She noted that setting the right withdrawal threshold is critical to ensure retirees can continue earning sustainable dividends and maintain sufficient support throughout their retirement years.

Her response came following a query from Datuk Ahmad Amzaz Mohamed @ Hashim (PN–Kuala Terengganu), who asked the government to justify the idea of monthly EPF payments for civil servants, given that the savings come from employees’ own contributions.

The government is exploring the possibility of introducing a monthly pension-style payment under the EPF framework as part of the 13th Malaysia Plan. According to the plan, the aim is to develop mechanisms that ensure a steady stream of income after retirement, reflecting the importance of adequate savings in safeguarding the long-term wellbeing of civil servants.

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  • Siti is a news writer specialising in Asian economics, Islamic finance, international relations and policy, offering in-depth analysis and perspectives on the region’s evolving dynamics.

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