Latest news with #Employees'ProvidentFund
New Straits Times
3 days ago
- Business
- New Straits Times
World Bank addresses (mis)perception of higher retirement age limiting jobs for younger workers
KUALA LUMPUR: The perception that increasing the retirement age will restrict job opportunities for younger workers is inaccurate and not supported by economic evidence, a senior World Bank economist said. World Bank senior economist for social protection and jobs for East Asia and Pacific region Dr Matthew Dornan said this stems from the misconception that the number of jobs in an economy is fixed. "In reality, the number of jobs in an economy is not static. It evolves based on market demand and economic growth," he said at the International Social Wellbeing Conference 2025 by the Employees' Provident Fund (EPF) here today. Dornan said studies have shown older workers remaining in the labour market do not significantly reduce overall job opportunities for younger individuals. Elaborating further, he noted that the presence of older workers in the workforce can have a multiplier effect on job creation. "When older workers remain employed, they have income to spend, and this spending drives demand for goods and services often provided by younger workers," he said. The chain reaction, he added, stimulates economic activity, ultimately leading to the creation of more job opportunities across various sectors. On proposals to raise the retirement age, Dornan said such measures might become necessary in the future to ensure the nation's economic stability, particularly as the population continues to age. He highlighted that many countries have already adopted similar approaches, establishing a retirement age of around 65 years as the new norm. However, he said any decision on retirement age must be made with careful consideration and tailored to Malaysia's specific context and needs. "Typically, countries implement retirement age increases gradually to avoid system shocks and ensure smooth transitions," he said. Dornan recommended that Malaysia evaluate structural labour market factors, fiscal sustainability and citizens' life expectancy before making decisions related to retirement age policies.
New Straits Times
4 days ago
- Business
- New Straits Times
EPF unveils sustainability commitment to drive inclusive, climate-resilient future
KUALA LUMPUR: The Employees' Provident Fund (EPF) unveiled its EPF Sustainability Commitment during the International Social Wellbeing Conference 2025, outlining a transformative roadmap toward a more sustainable, inclusive, and climate-resilient future. The announcement was made by EPF chairman Tan Sri Mohd Zuki Ali, who stressed the urgency of confronting global challenges while safeguarding long-term societal resilience. In his speech, he reflected on the conference's key themes, underscoring the need to prepare for longer lives by fundamentally rethinking societal resilience. "Preparing for longer lives requires more than policies and programmes. It demands fundamental rethinking of how we build resilience across all aspects of society," he said, calling for urgent and focused action. At the heart of the EPF Sustainability Commitment is a comprehensive strategy to embed sustainability across the organisation's operations, policies, and investments. The chairman explained that the initiative seeks to tackle climate resilience and promote low-carbon growth, enhance inclusion and equity within communities, and uphold transparency, integrity, and accountability. EPF envisions this initiative as a shift from safeguarding savings to stewarding futures, with the ultimate goal of creating long-term value for members and society. Mohd Zuki also shared the need to address the impacts of climate change, rising inequality, and economic uncertainty, noting that these challenges are already affecting lives and livelihoods, particularly among older populations. He highlighted that the effects of biodiversity loss and global warming make sustainability not just an ethical responsibility but also a strategic necessity. "Capital, when purposefully directed, can catalyse meaningful change," he stated, emphasising the role of institutional investments in fostering economic and environmental resilience. EPF's strategy underscores the importance of aligning financial stewardship with broader societal objectives. By investing in businesses and industries committed to sustainability, the EPF aims to secure the stability of its portfolio while contributing to a healthier economy, environment, and society. He also reiterated that sustainability is no longer a choice but an essential measure to safeguard the future. The speech concluded with a call to action, urging policymakers, academics, investors, employers, and citizens to collaborate in creating a secure, inclusive, and sustainable future. "Achieving a secure, inclusive, and sustainable future requires the collective effort of every sector," he said.
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Business Standard
5 days ago
- Business
- Business Standard
EPFO contribution mismatch? Here's how to sort out employer errors
Many employees rely on their Employees' Provident Fund (EPF) savings for long-term financial security. However, discrepancies in the monthly contributions made by employers are not uncommon. Whether it's a missing payment or a lower-than-expected amount, such issues need to be addressed quickly to ensure your retirement savings are not affected. Here's a step-by-step guide on what to do if your EPF contributions don't match up. Spotting the discrepancy The first step is to regularly check your EPF passbook, which is available on the EPFO portal. This shows the monthly contributions made by both you and your employer. If there is a mismatch, for instance, the employer's contribution is missing or delayed, it should raise a red flag. Common reasons for mismatches Contribution mismatches can occur due to: · Delay or default in payment by the employer · Incorrect Universal Account Number (UAN) or employee details · Technical errors during salary processing · Change of job without updating EPF details How to raise a complaint? Employees have multiple options to resolve these issues: · Talk to your employer first: Often, the issue is a clerical error or technical glitch at the company's end. · File a grievance on the EPFiGMS portal ( You can raise a complaint by selecting the issue type and providing relevant details such as UAN, the period in question, and a screenshot or proof of discrepancy. · Contact EPFO directly: You can also visit the nearest EPFO office or call their toll-free number 1800-118-005. What does the law say? As per the Employees' Provident Fund and Miscellaneous Provisions Act, 1952, it is mandatory for employers to deposit 12 per cent of the employee's basic salary plus dearness allowance into the EPF account. Failure to do so is a violation and can attract penalties, including interest and damages. Discrepancies in EPF contributions can impact your long-term savings. But timely checking and taking action can help you get back what's rightfully yours. Don't delay, a small mismatch today could snowball into a bigger issue later.
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Business Standard
05-06-2025
- Business
- Business Standard
Young Indians want to retire early; few are financially ready: Survey
Young Indian professionals wish to retire early but most of them do not save enough to make that dream a reality, according to a survey by professional services firm Grant Thornton Bharat. The survey was conducted by Grant Thornton Bharat gathered responses primarily from private sector employees aged 25–54. It focused on retirement planning, pension expectations, and financial awareness using structured questionnaires. Early retirement, but limited savings As many as 43 per cent of respondents aged 25 or younger wish to retire between 45 and 55 years, much earlier than the conventional retirement age of 60. Around 74 per cent of all survey participants said they contribute 1 per cent to 15 per cent of their monthly salary as retirement savings. 'There is a clear mismatch between expected retirement age and financial contribution patterns,' said the report, adding that high aspirations aren't matched by prudent investment behaviour. High pension expectations, low confidence While over half the respondents said they expected a monthly pension of more than Rs 1 lakh, only 11 per cent were confident that their investments will be sufficient. 'This stark disparity highlights a significant preparedness gap,' the survey noted. Dependence on traditional products Most respondents continue to rely heavily on traditional pension schemes. Nearly 83 per cent said their retirement planning is based on the Employees' Provident Fund, gratuity, or the National Pension System (NPS). Private annuity plans, which can offer stable income post-retirement, remain underutilised; 76 per cent of respondents have not invested in them. Half of the respondents admitted to having no knowledge about the Atal Pension Yojana, a government scheme aimed at securing retirement income for informal workers. Meanwhile, only 17 per cent said they understood their pension calculations 'very well.' ALSO READ | What needs to change The findings underscore the need for financial education and reforms in pension planning. 'Financial institutions should consider introducing more guaranteed income products, such as annuities, to cater to the demand for stability,' said the report. It called for reforms in NPS and improving awareness about pension schemes and retirement planning.
Time of India
05-06-2025
- Business
- Time of India
Are you saving enough for retirement? Many aren't
HighlightsThe survey conducted by Grant Thornton Bharat revealed that nearly 83 percent of participants primarily rely on three retirement products: Employees' Provident Fund, gratuity, and National Pension System, indicating a lack of diversification in retirement portfolios. While over half (55%) of respondents expect a monthly pension exceeding Rs 1 lakh, only 11% believe their current investments are adequate to meet these expectations, highlighting a significant preparedness gap in retirement planning. A notable 74 percent of respondents contribute between 1 percent and 15 percent of their salary towards retirement plans, suggesting a cautious approach to savings that may be influenced by financial constraints or competing priorities. Higher earners contribute more to retirement products , but the overall contribution is still relatively low for most individuals, suggesting that many people may not be saving enough for retirement, a survey showed on Wednesday. Nearly 83 per cent of participants relied largely on three retirement products: EPF, gratuity, and NPS. 'This reliance on traditional schemes suggests limited diversification in retirement portfolios ,' said the survey conducted by consulting firm Grant Thornton Bharat. The results showed that more than half (55 per cent) of respondents expect a monthly pension exceeding Rs 1 lakh. However, only 11 per cent believe their current investments are sufficient to meet these expectations. 'This stark disparity highlights a significant preparedness gap that needs to be addressed through better financial planning and awareness,' said the report, the survey for which was conducted by the consulting firm in Aug and Sept last year. Govt-backed plans remain the most preferred option, with 39 per cent of participants favouring such schemes. About 27 per cent of respondents showed a preference for private plans offered by reputable financial institutions. High-risk, high-return plans were particularly popular among younger respondents, with 31 per cent of participants under 25 years interested in these options. 'This finding suggests a growing appetite for risk among the younger demographic,' said the report. With regard to the age of retirement, about 56 per cent of respondents said they plan to retire between the age of 55 and 65. 'This age range aligns with standard retirement practices in India and reflects the broader societal norms regarding work and retirement in the country,' according to the report. Younger respondents, particularly those who were 25 years or below, preferred early retirement. Among this group, 43 per cent showed a preference to retire between 45-55 years. 'Trend indicates shift in attitudes among younger employees, who may prioritise work-life balance & leisure over extended career spans,' said the report. The majority, 74 per cent of respondents, said that they contribute between 1 per cent and 15 per cent of their salary toward retirement plans. 'This contribution range indicates a cautious approach to savings, possibly influenced by financial constraints or competing priorities,' said the report. Asked to respond about their knowledge of pension calculations, 52 per cent of respondents said they were somewhat aware of how their pensions are determined, while 30% admitted to being completely unaware.
