Under the self-contribution programme, EPF contributions can be made by any individual at any time up to a maximum of RM60,000 per year.
To encourage Grab Malaysia’s community of driver and delivery-partners to save for their retirement, the organisation has signed a Memorandum of Understanding (MoU) with Kumpulan Wang Simpanan Pekerja (KWSP), or the EPF, introducing the i-Saraan, a voluntary contribution programme that is designed to allow individuals in the gig economy and the self-employed to save up for their retirement through contributions to the EPF.
Under i-Saraan, members will receive government incentives of up to 15% of the individual’s annual contribution, subject to a cap of RM250 per year. Under the self-contribution programme, EPF contributions can be made by any individual at any time up to a maximum of RM60,000 per year.
With that, workers will be able to benefit from the effect of compounding dividends. In terms of numbers, an individual who saves RM10 a month for 30 years will be able to accumulate savings of RM8,220 after 30 years, or more than double their total contribution, thanks to the power of compounding dividends. If partners save RM140 monthly, they will be able to maximise the Grab and i-Saraan incentives and accumulate RM114,840 in 30 years.
EPF Chief Executive Officer Amir Hamzah Azizan said: “EPF’s collaboration with Grab will enhance the retirement wellbeing of its driver and delivery-partners, and we applaud Grab for its commitment to further incentivise and encourage individual accountability in planning for their retirement future. This MoU also serves to promote financial literacy among them on the importance of retirement planning, amid the current challenging economic landscape that necessitates everyone to be mindful of their financial situation.
Commenting on the collaboration, Grab Malaysia Managing Director, Sean Goh said: “We are honoured to partner with EPF as the Government looks to create a more holistic social protection ecosystem. At Grab, we are committed to providing equal access to new income opportunities, and also help tackle underemployment by encouraging supplementary income via the digital economy - especially for those in unique circumstances, such as persons with disabilities and retirees."
He added that this partnership is a step in the right direction to promote good financial habits that build financial security amongst all Malaysians.
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