Grab drivers can now save for their retirement with EPF – Tech News

<pre>Grab drivers can now save for their retirement with EPF - Tech News
Grab drivers can now sign up to the payment of a portion of their earnings to the Employees of the Provident Fund (EPF) voluntary retirement savings program, which both Grab and EPF will top up.

EPF chief executive officer Datuk Shahril Ridza Ridzuan says by contributing to Caruman Sukarela Insentif Persaraan (i-Saraan), Grab driver-partners will benefit from the annual dividends on their retirement savings, tax relief, death benefit and access to EPF's Retirement Advisory Service at no cost.

“We would like to encourage the community of the Grab Driver-partners to voluntarily sign up as EPF members and save for their retirement with the EPF. of the sustainable, above-inflation returns which will increase the value of their savings over the long term, “he said, at the signing of the Memorandum of Understanding (MoU) between Grab and EPF today.

He adds that on top of annual dividends and benefits, the Government will make up an additional 15% of the annual contributions to the RM250 per year until 2020, for members below 55-years-old.

Starting August 16, Grab will also provide a 5% contribution to the amount of money saved by selected driver-partners but it's limited to a maximum of RM80 a year.

Grab Malaysia country head Sean Goh says a survey of their driver-partners revealed 75% this collaborat ion.

“Grab Malaysia is proud to partner the EPF in support of the Government's initiative to create a more holistic social protection ecosystem, starting with maintenance the retirement of our Grab community of driver-partners. We therefore want to encourage them to take charge and be in the driver's seat of their future financial security, “he says.

Previously known as the 1Malaysia Retirement Savings Scheme (SP1M), i-Saraan is designed to allow self-employed for retirement while enjoying the same benefits as EPF members.

However, since i-Saraan is the gig economy worker's version of the full EPF staff, this MOU does not suggest Grab is moving to acknowledge driver-partners as actual staff, something hotly contested in other countries.

The Institute of Labor Market Information and Analysis (ILMIA) statistics reveal that of Malaysia's working population of 22 million, about 7.1 million.

The remaining 13.2 million are self-employed or freelance workers, outside the labor force and not covered by any formal social protection programs.

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