KUALA LUMPUR (Aug 9): The Employees Provident Fund (EPF) and ride-hailing service provider, Grab Malaysia, signed a memorandum of understanding (MoU) to encourage the ride-hailing driver-partners community to participate in EPF’s voluntary retirement savings programme, Caruman Sukarela Insentif Persaraan (i-Saraan).
EPF Chief Executive Officer Datuk Shahril Ridza Ridzuan said members of the ride-hailing community participating in the programme would be provided with a secure savings option as the EPF has a proven track record of sustainable, above-inflation returns which will enhance the value of their savings over the long-term.
“By contributing to the scheme, Grab driver-partners can enjoy the same benefits as an EPF member, such as annual dividends on their retirement savings, tax relief, death benefit and access to our retirement advisory service at no cost,” he said in a statement today.
Shahril said on top of annual dividends and benefits, the government would top up an additional 15% of annual contributions to a maximum of RM250 per year until 2022 for members below age 55.
Grab Malaysia Country Head, Sean Goh said by partnering with EPF, the company was supporting the government’s initiative to create a more holistic social protection ecosystem, starting with ensuring the retirement wellbeing of the Grab community of driver-partners.
“In fact, based on a survey with our driver-partners, 75% of them have expressed interest to save for their retirement specifically through this collaboration.
“We therefore want to encourage them to take charge and be in the driver’s seat of their future financial security,” he said.
i-Saraan, previously known as the 1Malaysia Retirement Savings Scheme is designed to allow individuals who are self-employed or those who receive no regular monthly income, such as taxi drivers, petty traders, farmers, freelancers, as well as, those working in the gig economy, to save for their retirement while enjoying the same benefits as EPF members.
Effective Aug 16, 2018, Grab would also contribute 5% on the amount contributed by selected driver-partners, subject to a maximum of RM80 a year, in addition to the government incentives provided.
According to statistics by the Institute of Labour Market Information and Analysis (ILMIA), out of Malaysia’s 22 million working population, only 7.1 million were actively contributing to the EPF and 1.7 million were covered by the public pension scheme.
The remaining 13.2 million comprised individuals who were self-employed or freelancers and outside the labour force not covered by any formal social protection programme in the country.