EPF Calculation

I found this on my Friendster. Not sure if the calculation are right or not.

It is advisable to maintain the contribution at 11% for our benefit.!!!!!

English Translation :

Assume monthly basic salary is RM4000.

- If your monthly EPF contribution is 11% ( RM440 ), taxable income = RM3560, income tax payable = RM77.

- If your monthly EPF contribution is 8% ( RM320 ), taxable income = RM3680, income tax payable = RM109.

Conclusion : If you choose to contribute 8%, you will end up paying more income tax to the government,
which will make the government richer. Finance Minister Najib said this measure is meant to boost up the slow-down market, but from this example wee see that the money does not go into the market. Instead the money goes direct into the government's pocket through the greater amount of income tax that we will have to pay. Obviously this measure does not help the market at all.

If this is true, then the gomen really sucks big time. They think that we the 'rakyat' don't know about their evil scheme? With that much money, I better spend it to buy self defense products instead of giving them.

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Lorna said...

Hm, everyone should know that EPF contribution is using pre-tax dollars, even the US does this. I don't see what evil the govt has played in this. It's a matter of whether the rakyat is aware of how to save money wisely.