KUALA LUMPUR: The Employees Provident Fund (EPF) has partnered with GoGet Malaysia (GoGet) to launch the first integrated EPF savings programme to financially protect and prepare the community of gig workers, who are referred to as 'GoGetters', for retirement.
EPF today signed a memorandum of understanding (MoU) with GoGet, which will be the first in Malaysia to include EPF contribution features in the GoGet platform that is integrated and customisable.
"This is part of the efforts to encourage GoGetters to contribute to their retirement savings through the EPF's voluntary contribution programmes such as i-Saraan and self-contribution," it said.
The i-Saraan is a voluntary contribution programme that allows individuals below age 55 in the gig economy and the self-employed to save up for their retirement via contributions to the EPF.
Under i-Saraan, members will receive government incentives of up to 15 per cent of the individual's annual contribution, subject to a cap of RM250 per year.
EPF chief executive officer Datuk Seri Amir Hamzah Azizan said the collaboration with GoGet is part of the EPF's agenda to cast the social security net wider and extend coverage to those in the informal sector and gig workers.
Indeed, Amir said the GoGetters contribute immensely to the economy and leaving them vulnerable without a social safety net for retirement would have far-reaching socio-economic consequences in the near future.
"The Covid-19 pandemic has changed the working landscape greatly and we are seeing a steep increase in the number of self-employed individuals in Malaysia. For some, self-employment can be an appealing career path, but it does not come with a built-in retirement plan.
"This is where the EPF's role is crucial as we want them to have the support of a formal retirement plan for their retirement security," he said.
GoGet chief executive officer Francesca Chia said creating a safe and trusted platform for its GoGetters has been the company's priority since day one.
Chia said the company believes it can only do this by ensuring that financial protection is one of our core pillars.
"This is why apart from providing insurance and working with SOCSO, we truly value this partnership with the EPF," she said.
GoGet's integrated and customisable features for EPF contributions aim to make saving seamless and easy for the gig workers with an EPF account to save on the GoGet platform.
Gig workers with existing EPF account simply have to give consent to opt into the programme and set their contribution rate.
In addition, the bonus that GoGetters receive from GoGet will also be part of the income that is contributed to the EPF.
The feature is highly flexible as GoGetters are able to adjust their contribution rates or opt-out of the programme at any point.
GoGetters who are working part-time and attached to a formal employer, or those aged 55 and above, are also encouraged to contribute via the self-contribution programme, which is open to all individuals who can contribute any time up to a maximum of RM60,000 per year.
By starting to save early and consistently even with a small amount, GoGetters will be able to benefit from the effect of compounding dividends.
For instance, an individual who saves RM50 a month for 30 years will be able to accumulate savings of RM47,000 after 30 years, or more than double their total contribution of RM18,000, thanks to the power of compounding dividends.
If GoGetters save RM140 monthly, they will be able to maximise the i-Saraan incentives and accumulate RM131,000 on the back of RM50,400 total contributions in 30 years.