Menu Close

EPF, Grab ink MoU for drivers, partners’ retirement funds

This post was originally published on this site

by ANIS HAZIM / pic by TMR FILE

THE Employees Provident Fund (EPF) has signed a memorandum of understanding (MoU) with Grab Malaysia to encourage Grab’s drivers and delivery partners to save for their retirement via the EPF’s i-Saraan programme.

This voluntary contribution programme was designed for those below the age of 55 or a self-contribution for those aged 55 and above in the gig economy and self-employed.

In a statement yesterday, EPF said 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.

“Meanwhile, under the self-contribution, it can be made by any individual at any time up to a maximum of RM60,000 per year,” it added.

From September 1, Grab is also offering several incentives for qualified independent partners under the MoU.

“An additional contribution of 5%, up to a maximum RM80 annually for driver and delivery-partners below age 55 who contribute to EPF’s i-Saraan, and an additional contribution of 10%, up to a maximum of RM120 annually for aged 55 years and above who contribute to EPF’s self-contribution,” said EPF.

For driver and delivery-partners classified as persons with disabilities (PWD) across all age groups who contribute to the EPF’s i-Saraan or self-contribution will be given an additional contribution of 10%, up to a maximum of RM120 annually.

Partners will also be able to benefit from the effect of compounding dividends by starting to save early and consistently with a small amount.

“For instance, an individual who saves RM10 a month for 30 years will be able to accumulate savings of RM8,220, or more than double their total contribution.

“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 added.

EPF CEO Datuk Seri Amir Hamzah Azizan said EPF’s collaboration with Grab will enhance the retirement well-being of its driver and delivery partners.

“We applaud Grab for their 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,” said Amir in the statement.

He added that not only will this help them prepare for their retirement, but they will also be able to enjoy benefits as EPF members such as annual dividends, tax relief and others.

Meanwhile, Grab Malaysia MD Sean Goh expressed his gratitude for partnering with EPF as the government looked to create a more holistic social protection ecosystem.

“At Grab, we are committed to providing equal access to new income opportunities as well as help tackle underemployment by encouraging supplementary income via the digital economy, especially for those in unique circumstances, such as PWDs and retirees,” Goh said.

He noted that the pandemic has seen a rapid increase in driver and delivery-partner applications with over 50,000 people joining the platform.

“They work hard everyday to provide for themselves and their families, so it is on us to keep pushing the boundaries.

“That is why we have gone the extra mile to contribute an additional 10% for partners aged 55 years and above who contribute via the self-contribution programme and for PWD partners, to encourage them to look after their livelihood,” he added.

Sean said this partnership is a step in the right direction as public and private partners come together to promote good financial habits that build financial security among all Malaysians.

The signing of the MoU was a continuation of the previous MoU signed between EPF and Grab Malaysia in August 2018.