Description
The Employees' Provident Fund (EPF) is a compulsory scheme for all wage earners. CAP's latest report reveals that contributors are losing millions of dollars because of the EPF's interest policy on contributions.
The report shows that EPF pays low interest rates on workers' funds compared to commercial rates. And to add insult to injury, no interest is paid by EPF on contributions made during the current year.
The EPF is also a cheap source of loans for the government to finance its budget deficits and projects. This means that EPF contri- butors who come from the working class and the poorer sectors of society are subsidising the Government by providing loans at low interest rates.
The report gives recommendations to the Government in the hope that the position of EPF contributors will be improved.
