The Employees Provident Fund (EPF) inked a Memorandum of Understanding (MoU) with Uber Malaysia to encourage its ride-sharing drivers to use the 1Malaysia Retirement Savings Scheme (SP1M) for their retirement savings.
The SP1M caters to self-employed individuals, or those with no fixed monthly income, such as taxi drivers, petty traders, farmers, housewives and freelancers, as well as Malaysians working abroad to save through a retirement fund managed by the EPF.
SP1M was introduced in 2010 to counter the growing number of Malaysian informal sector workers who did not save enough, either in retirement fund or financial assets, for their retirement, explained EPF Chief Executive Officer, Datuk Shahril Ridza Ridzuan.
“We are pleased that Uber shares our concerns and has agreed to partner us.
“In addition, Uber has agreed to other areas of collaboration, including facilitating a series of financial planning talks by the EPF and allowing us to promote retirement planning to driver-partners,” Shahril said in a statement.
“While driver partners have contributed greatly to improving urban mobility and connectivity, we now want to encourage them to take charge and be in the driver’s seat of their own retirement,” General Manager for Uber in Malaysia and Singapore, Warren Tseng commented on the collaboration.
Contributors under SP1M may voluntarily contribute a minimum of RM50 into their SP1M account up to a maximum of RM60,000 a year, and are entitled to earn dividends on their savings.
Uber drivers who become members of SP1M will also enjoy the same benefits as current EPF members, such as the RM2,500 death benefit.
Under the scheme, the government also contributes 10% of annual contributions to a maximum of RM120 per year until the end of 2017, for members below age 55, on top of the yearly dividends and other EPF benefits.
EPF said it is currently in talks with the government to continue extending this benefit.
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