The government has been urged by the Social Protection Contributors Advisory Association Malaysia (SPCAAM) to exempt members of the B40 and M40 groups who continue working beyond the age of 60 from paying income tax.
SPCAAM president J Solomon highlighted that Prime Minister Anwar Ibrahim had previously acknowledged that the four special withdrawals sanctioned during the Covid-19 pandemic left 71% of active EPF contributors without sufficient retirement funds to retire above the poverty line.
Solomon emphasized that individuals from the B40 and M40 segments might need to prolong their employment to support themselves and their families after reaching the retirement age, as EPF estimates suggest that savers may need to extend their working years by four to six years to rebuild the savings depleted during the pandemic.
“In the challenging local and global economic landscape of the post-pandemic era, our senior citizens from the B40 and M40 group will likely have to continue working even after they have reached the retirement age of 60, to take care of not only themselves, but their families,” he added.
Solomon also noted that upon turning 60, employees lose coverage under Socso, and their employers' EPF contributions is reduce to 4%.
Solomon urged measures to be implemented to ensure older B40 and M40 workers have increased disposable income, given the lack of social protection and diminished future savings.
"If our senior citizens cannot depend entirely on the country for support, then the least the country can do is enable them to support themselves," he stated.
He emphasized that individuals in the B40 and M40 categories, upon reaching 60, have already contributed significantly to the nation's development, fulfilling their tax obligations.
"In their golden years, the nation should permit them to retain their income without further contributions," Solomon concluded.
Nehru Sathiamoorthy is the author of “While Waiting for the World to end”. He was a columnist at FMT and a frequent contributor to the South China Morning Post, The Star, Malaysia-Today, MalaysiaNow, MalaysiaKini and Focus Malaysia.
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