SHAPING THE RETIREMENT WELL-BEING FOR
YOUR EMPLOYEES TODAY
We spend over 30 years of our lives working and it is possible to still not have enough saved up for our post-working years as highlighted by various reports. With the future of work evolving, there is a need to adapt to changing retirement lifestyle as well.
The journey to retirement readiness can be shaped by the employers when your employees are provided with an avenue to save more for their future through the Private Retirement Schemes (PRS).
Not only will employers help jumpstart the journey towards retirement well-being, the additional PRS savings will enable your employees to better transition from work to retirement when the time comes.
PRS complements your employee’s mandatory retirement savings and by investing in your employee’s well being, your corporation is proudly stepping forward as a caring employer and become an employer of choice.
WHEN WE, SAVE IN PRS
|ATTRACTING AND RETAINING TALENTS
Reward loyal and outstanding employees and enhance recruitment appeal by implementing PRS as part of the benefits package.
|STRENGTHEN WORKING BONDS
Employers show that they care for their employees’ well-being and retirement life.
|ENHANCED EMPLOYEE PRODUCTIVITY
Foster a positive work environment for better performance as employees are happier, more productive and better prepared for their retirement.
Employers enjoy up to 7% above the statutory rates for tax deductions on contributions to PRS made on behalf of employees.
Tax deduction for contributions
made by Employers
Kreatif Sdn Bhd made the following contributions for the accounting period ending on 31 December 2020:
(a) EPF = 12% of employees’ remuneration and
(b) PRS funds = 7% of employees’ remuneration
Total employees remuneration for the period was RM300,000. Allowable deduction to the company under subsection 34(4) of the Income Tax Act is RM57,000 (RM300,000 x 19%).
Source: Inland Revenue Board (Private Retirement Scheme – Public Ruling No. 9/2014 Section 5.2).
|ADDITIONAL SAVINGS FOR RETIREMENT
PRS is designed with retirement in mind as employees can save to achieve their future retirement goals.
Choose from all PRS Providers and various funds to match the employees’ unique investment profile and risk appetites, with the flexibility to switch PRS funds within the same Provider or transfer PRS funds to another PRS Provider.
Being financially literate about retirement planning and readiness helps employees make informed decisions to plan and save more for the retirement they want.
Enjoy up to RM3,000 personal tax relief annually until the year 2025, on individual contribution into PRS.
OPTIONS TO START CONTRIBUTING IN PRS
Employers can introduce PRS to employees and encourage saving more for retirement by implementing:
PRS can be implemented as part of the corporation’s benefit and compensation package, whereby employers can make contributions on the employees’ behalf to a PRS fund of their choice. Employers can sponsor the adoption of the PRS via:
Employee Service & Milestone Awards to reward loyal employees for their long-term service.
Employee Performance Awards to celebrate high-performing employees for their achievements.
Employee Bonus Schemes to reward employees with cash, PRS contributions or both.
Employers can match the employees’ PRS contributions as an incentive for employees to continue saving in PRS for retirement. The minimum and maximum contribution amount can be determined by the employer.
The automation of PRS contributions monthly inculcates an unconscious habit of saving amongst employees.
For further information about the Department of Labour’s application procedures to implement salary deduction, employers may visit:
For Peninsular Malaysia: http://jtksm.mohr.gov.my
For Sabah: http://jtksbh.mohr.gov.my
For Sarawak: https://www.jtkswk.gov.my
TELL US MORE ABOUT SAVING IN PRS
If your corporation would like to know more about PRS funds or PRS Providers’ offerings, PPA as the central administrator for PRS, can facilitate arrangements with your preferred PRS Provider(s) to meet and discuss further with the employer.
Contact PPA to schedule an online PRS Presentation for Employees by completing the form below.
SO, TAKE THE JOURNEY NOW.
Together, we save in PRS to shape our retirement well-being.