KUALA LUMPUR: The Social Protection Contributor Advisory Association Malaysia (SPCAAM) has called on the government to waive income tax for B40 and M40 earners who are working past the age of 60.
Given the challenging economic conditions, it said senior citizens in these categories may find it necessary to keep working past the retirement age to support themselves and their families.
"After the age of 60, an employee is no longer covered by the Social Security Organisation (Perkeso).
"Employers' contribution to their Employees Provident Fund (EPF) is also reduced to four per cent.
"Considering the absence of social protection and reduction in future savings, SPCAAM believes that steps should be taken to ensure that elderly B40 and M40 workers at least have a greater amount of disposable income in their hands," the association said in a statement today.
It said it was important for the government to allow elderly individuals to fend for themselves.
"Prime Minister Datuk Seri Anwar Ibrahim, who is also our finance minister, said the four special withdrawals approved during the Covid-19 pandemic had resulted in 71 per cent of active EPF contributors who are 55 and below not having enough money to retire above the poverty line.
"The EPF estimates that its members will be required to work an extra four to six years to rebuild the savings that were withdrawn during the pandemic," it added.
SPCAAM said the expectation of enjoying retirement had diminished in the aftermath of the pandemic, and that B40 and M40 workers had spent most of their adult lives carrying their fair share of the nation's financial weight.
"The government should at least allow them to keep their income for themselves without asking them to keep contributing to the country's maintenance and development.
