Want to find an indirect way to pay your spouse their monthly allowance while ensuring that they have extra savings? Introducing EPF i-Sayang which is an initiative introduced by the government to allow the contributor (husband) to transfer 2% of their employee share contribution received from the employer to the receiver (wife) EPF account.
EPF currently limits it to a maximum of 2% for each wife & for Malaysian Muslims that have 4 wives, you are allowed to contribute 2% for each wife (8% total) & have a balance of 3%. For example, if your salary is RM2,000, your EPF contribution is 11% which is RM220. Your wife will be eligible for 2% or RM40 each month. Upon activation, the contribution can’t be canceled unless you & your wife are divorced or dead.
In my opinion, it is a good way in ensuring that your spouse’s future is taken care of whether they are working or being a full-time housewife. Many of us know that being a working wife is not the easiest job especially when they are a mum where they have to hustle at work & taking care of the kids after working hours. For full-time housewives, sacrifice their work-life & income just to live a housewife life & taking care of their kids full-time. It is definitely a challenging yet fulfilling job for them so they definitely deserve that 2% contribution on top of the love, care & allowance of what a good husband should contribute to their wife. Aside from paying extra to the wife via i-Sayang, it is also a form of investment to your wife where they get to enjoy annual EPF dividends which averages between 5-6% annually.
To be eligible for it, the husband & wife have to fulfill below requirements:
Husband (Contributor)
- Malaysian or Non-Malaysian
- EPF member
- Below 75 years old
- The marriage that is registered under Malaysian law
Wife (Recipient)
- Malaysian
- EPF member
- Below 75 years old
- The marriage that is registered under Malaysian law
To apply for it, the husband can apply via i-Akaun or head to the nearest EPF office to complete the registration via the i-Sayang form.
You can also understand more about EPF i-Sayang by clicking on this link.
OSS!
You can also check out my latest YouTube video on Why Do You Need Financial Planning?
