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The Employees Provident Fund (EPF) clarifies that the reduction of the statutory contribution rate for employees from 11% to 8% is for employees below age 60 while the reduction from 5.5% to 4% is for employees above age 60, starting from March 2016 wage/salary until December 2017.
The reduction in the contribution rate involves two categories of employees:
a) Members/employees below age 60
The reduction of contribution rate from 11% to 8% is subject to the amount of wage/salary as stipulated in Part A and Part B of the Employees Provident Fund Order (Amendments to the Third Schedule) 2016, EPF Act 1991.
b) Members/employees above age 60
The reduction of contribution rate from 5.5% to 4% is subject to the amount of wage/salary as stipulated in Part C and part D of the Employees Provident Fund Order (Amendments to the Third Schedule) 2016, EPF Act 1991.
The contribution rate for employers, however, remains at the current rate.
The rates of contribution for employers and employees effective 1 March 2016 can be referred to the Third Schedule, EPF Act 1991 (click here to download). Employers must refer to the schedule for payment of contribution.
Updated : 5 February 2016
Reviewed : 5 February 2016