Social Protection

Social protection for the older persons is based on 5-pillar Typology; non-contributory social assistance financed by the state, mandatory with contributions linked to earnings, mandatory defined contribution plan with independent investment, voluntary forms (life/health insurance, bonds and stocks), and informal support (informal intra-family sources or intergenerational support). The Government has launched the establishment of Private Retirement Scheme (PRS), which will provide employees and the self-employed with an additional avenue to save for their retirement. 

For the self-employed, a scheme known as i-Saraan was introduced in 2018, whereby, members aged below 60 years old will receive a 15% government incentive of the contribution made by the members, subject to a maximum of RM300 for year 2023 (note: maximum RM250 as annual incentive for year 2018-2022).