Malaysia's Budget 2024: Insights into EPF & SOCSO revisions
Having just moved into the new year, many Malaysians may have forgotten the introduction of Budget 2024. Here we will do a simple recap on how budget 2024 helps employees and their range of initiatives that are focused on enhancing the country's social security and retirement savings programs. These measures are designed not only to fortify the financial stability of Malaysians but also to foster employment opportunities for vulnerable segments of the population.
Let us take a quick look into what these adjustments are.
1. Employees Provident Fund (EPF)
These initiatives are set to undergo restructuring to augment retirement savings.
Key Updates:
- Introduction of a new EPF Flexible Account accessible to members at any time.
- i-Saraan program:
- Self-employed workers.
- Increased to RM500 annually.
- Capped at RM5,000 for a lifetime.
- i-Suri program:
- Geared towards housewives.
- Increased to RM300 annually.
- Limited to RM3,000 lifetime.
- i-Sayang program:
- Expanded to allow wives to transfer 2% of their EPF contributions to their husbands.
2. Social Security Organisation (SOCSO)
The following initiatives aim to empower and support vulnerable segments of society, including individuals with disabilities, former inmates, and senior citizens.
Key Revisions:
- SOCSO Contribution:
- Increase in the monthly salary ceiling from RM5,000 to RM6,000.
- Ex-Gratia Work Disaster Scheme:
- Applicable to civil servants.
- Raised the salary ceiling from RM4,000 to RM6,000.
- iSpecial incentive:
- Targeting private sector employers to hire vulnerable individuals.
- RM1,500 per month for a period of 6 months.
Conclusion
Budget 2024 strives to improve the financial and social security of Malaysians. The government is dedicated to protecting citizens' welfare, ensuring a secure retirement, and creating job opportunities for vulnerable groups. These changes are set to build a stronger and more secure future for the people.
