For those of you who are still new to the working life, you might still be a bit lost about what EPF is.
EPF is an acronym for Employee Provident Fund – this is an account mainly for retirement savings for employees who are under the non-pensionable and private sector.
However, you may contribute voluntarily as well, even if you are not an employee in this sector.
Once EPF receives the first contribution under your name from your employer, you’ve automatically become a member of EPF.
If you would like to register yourself, you can do at the EPF counter along with form KWSP 3. You can also register by posting the form.
After registration, you will receive an EPF number, and you can sign up for i-Akaun, the online account with EPF.
With i-Akaun, you can perform the account activities online without going through the trouble of going to the EPF office.
Now, the real question remains unanswered – what is the EPF contribution rate for the employers and employees in Malaysia?
Worry not because today, we will be answering that question for you.
Below we have included the mandatory contribution rates for employers and employees in Malaysia.
However, it is essential for you to to take note that in accordance to the recent 2020 Economic Stimulus Package by the Government, there are changes to the contribution rates.
The contribution rate for employees aged below 60 has reduced from 11% to 7%.
This change is effective from April 2020’s wage (contribution for May 2020) until December 2020’s wage (contribution for January 2021).
Employees can also opt to carry on with the current EPF contribution rate at 11% by filling in the Borang KWSP 17A (Khas 2020).
Once the employees have filled in the form, employers should submit it to the EPF office.
EPF CONTRIBUTION RATE
Employees below 60 years old
Applicable for Malaysians and Permanent Residents (PR), and also Non-Malaysians who are registered members before 1 August 1998 (section A of the EPF Contribution Table):
Monthly Salary Rate of RM5000 and below:
- Employee’s Contribution: 7% of their monthly wage
- Employer’s Contribution: 13% of the employee’s wage
Monthly Salary Rate of more than RM5000:
- Employee’s Contribution: 7% of their monthly wage
- Employer’s Contribution: 12% of the employee’s wage
Applicable for Non-Malaysians who are registered members since 1 August 1998 (section B of the EPF Contribution Table):
- Employee’s Contribution: 7% of their monthly wage
- Employer’s Contribution: RM5.00
Employees above 60 years old
Applicable for Malaysians (section E of the EPF Contribution Table):
- Employee’s Contribution: 0% of their monthly wage
- Employer’s Contribution: 4% of the employee’s wage
Applicable for Permanent Residents (PR) and Non-Malaysians who are registered members before 1 August 1998 (section C of the EPF Contribution Table):
Monthly Salary Rate of RM5000 and below:
- Employee’s Contribution: 5.5% of their monthly wage
- Employer’s Contribution: 6.5% of the employee’s wage
Monthly Salary Rate of more than RM5000:
- Employee’s Contribution: 5.5% of their monthly wage
- Employer’s Contribution: 6.0% of the employee’s wage
Applicable for Non-Malaysians who are registered members since 1 August 1998 (section D of the EPF Contribution Table):
- Employee’s Contribution: 5.5% of their monthly wage
- Employer’s Contribution: RM5.00
For those who choose to maintain the contribution rates at 11%, the old EPF Contribution Table still applies.
