In Local News, Public Transport / By Jonathan Lee / 10 August 2018 11:07 am / 10 comments

Ride-hailing service provider Grab has signed a Memorandum of Understanding with the Employees Provident Fund to encourage its drivers to participate in the fund’s voluntary retirement savings programme, Caruman Sukarela Insentif Persaraan (i-Saraan).

According to a report by Bernama, EPF CEO Datuk Shahril Ridza Ridzuan said that those who sign up for the programme will get a secure savings option as the fund has a proven track record of “sustainable, above-inflation returns,” enhancing the value of their savings in the long run.

“By contributing to the scheme, Grab driver-partners can enjoy the same benefits as an EPF member, such as annual dividends on their retirement savings, tax relief, death benefit and access to our retirement advisory service at no cost,” he said in a statement. Shahril also mentioned that for members under 55 years of age, the government will top up an additional 15% of annual contributions on top of the annual dividends and benefits, up to a maximum of RM250 per year until 2022.

Partnering with EPF would allow Grab to support the government’s initiative to create a more holistic social protection ecosystem, by firstly ensuring the retirement wellbeing of its driver-partners, said Grab Malaysia country head Sean Goh.

“In fact, based on a survey with our driver-partners, 75% of them have expressed interest to save for their retirement specifically through this collaboration. We, therefore, want to encourage them to take charge and be in the driver’s seat of their future financial security,” he said.

The company would also contribute an additional five percent of the amount contributed by selected drivers, up to a maximum RM80 per year, in addition to the government incentives provided.

i-Saraan, previously known as the 1Malaysia Retirement Savings Scheme (SP1M), is a programme designed to allow self-employed individuals without a regular monthly income to save for their retirement and receive the same benefits as EPF members. A similar agreement was signed last year by Grab’s then-rival Uber, which it has since merged with.