In the 2014 Budget tabled on 25 October 2013, the Prime Minister had announced youth incentive of RM500 to contributors who participate in the PRS scheme to inculcate the importance of saving from an early age to ensure sufficient savings after retirement. The RM500 is a one-off contribution by the Government to young PRS members to encourage youth to undertake long-term savings for retirement through the PRS.
Pursuant to Budget 2017, the incentive amount has been enhanced by the government to RM1,000. The government will contribute RM1,000 per qualified youth to be used to purchase units of PRS funds in the PRS account. To qualify, the youth has to accumulate a minimum gross contribution amount of RM1,000 during a period of two (2) years from 2017-2018.
• Malaysian with existing PPA account or new member
• Individual between ages of 20 to 30 (based on birth date)
• Minimum RM1,000 gross contribution in a single fund within two (2) years from 2017 to 2018
• Effective period – 2017 to 2018