An Insight into Social Security for Graduating Students

By, Danish Dathran

GOMBAK, 28 May 2025: A sharing session prepared fresh graduates for work and retirement. It was conducted by Nor Iskandar Md. Nor, a representative of the Employee Provident Fund (EPF), at the International Islamic University of Malaysia, in conjunction with the Communication Festival 2025, today.

The talk shared information about one of the Malaysian government’s initiatives on a retirement plan in future for future employees that is a form of social security contributed by employers. The talk aimed to expose fresh graduates to life after graduation.

Nor Iskandar shared information about the different categories of social security that are covered by the Employee Provident Fund (EPF) and tried to make all students understand better about the retirement plans offered by organizations. Nor Iskandar said, ‘Each country has their own social security.’ The Social Security’s main purpose is to prepare citizens against poverty. The focus is on providing financial protection and help to individuals and households. The government wants to ensure that healthcare and well-being, and income are at secured. There are many ways employers give assistance, including cash, in-kind transfers, and other methods. Rancangan Makanan Tambahan (RMT) during school time is one example of in-kind transfer of EPF contributions to society besides giving cash, so that the individuals get help by providing them with food and drinks.

EPF gets financial help from the government and society to give back to those who are in need through general revenue, which includes the tax we pay to the government, and contributions by the employer and employees. The four functions of social security are Protective, Preventive, Promotive, and Transformative. The speaker shared one interesting and brilliant tip on how to increase the retirement plan by only taking out the dividend instead of taking the total amount. ‘Don’t take out all money, only the dividends, so more (investment) can grow,’ Nor Iskandar added.

The EPF is a great alternative for Malaysian citizens for their retirement plan. Due to the rise of inflation in future, employees need to contribute more to their retirement plans.***