Malaysia's public pension system consists of two pillars: (i) the Employees Provident Fund (EPF), for private-sector employees and certain public-sector employees; and (ii) a social insurance program, for casual workers and employees up to age 55 earning 3,000 ringgits (approximately US$ 950) or less a month.
The EPF provides two types of mandatory individual accounts that finance old-age, disability and survivors benefits: Account 1, which can be drawn down before age 55 to purchase approved investments; and Account 2, which can be drawn down before age 55 for the purchase of a house, for education costs, and for designated critical illnesses and prosthetic appliances. Further, all funds can be withdrawn at age 55.
On October 1, 2010 new regulations came into effect that extend public pension coverage to part-timeworkers (including those who work from 30% to 70% of the hours normally worked by full-timeemployees of the same company. The new regulations also grants part-timeworkers certain benefits, including annual and sick leave, paid public holidays and overtime. The Ministry of Human Resources estimates that approximately 12 million part-timeworkers became eligible for coverage under the new regulations. The government expects the legislation will also encourage more persons (including single mothers, homemakers, retired workers, and disabled workers) to reenter the workforce.
Article with courtesy of Social Security Online
Sources:Social Security Programs Throughout the World: Asia and the Pacific, 2008; IBIS Compliance Alert, Malaysia, September 17, 2010; "New Regulations for Part-TimeWorkers in Malaysia," Asian HR eNewsletter, September 20, 2010; "Ministry Announces New Rights for Part-TimeWorkers," Free Malaysia Today, September 29, 2010.