Union proposes EPF introduce bonus

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KUALA LUMPUR: The Union Network International-Malaysia Labour Centre (UNI-MLC) has proposed the Employees Provident Fund (EPF) introduce bonus, in addition to the dividend given to its contributors.

UNI-MLC president Mohamed Shafie BP Mammal said EPF could introduce a bonus system, as was practised by the Amanah Saham Bumiputera (ASB) and the Pilgrims Fund Board of Malaysia (TH).

“Apart from the dividend rate 6.75 per cent, EPF can give, for example, an extra one per cent bonus as reward to employees who have contributed for more than 25 years.

“This is just a suggestion which EPF can consider and it would be great if EPF introduces this new bonus system in future,” he told Bernama here yesterday.

He noted, out of 1.3 million contributors, probably 25 to 30 per cent of contributors with more than 25 years of savings would qualify for the bonus and believed EPF could afford to pay the bonus.

Mohamed Shafie said it would also encourage more employees to become EPF contributors.

UNI-MLC, with 80 affiliated unions and over 350,000 membership is an organisation to promote the interest of its affiliated organisations, besides improving the economic and social conditions of workers.

Meanwhile, UNI-MLC congratulated EPF’s board of directors over the announcement of the dividend rate of 6.75 per cent for the financial year ended Dec 31, 2014, its highest in over a decade.

“This is clear indication that the board of directors and investment committee are working hard to ensure the continuous growth of EPF and high returns for its contributors,” he noted.

Last Saturday, EPF Board declared a dividend rate of 6.75 per cent for 2014, higher than the 6.35 per cent announced in 2013. — Bernama