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Contribution Rate

The EPF's new contribution rate in line with the minimum retirement aged of 60 years will be effective from August 2013 salary/wage (September 2013 contribution). 
 
The two categories of employees that will be affected with the new change are as follows:

a. Employees aged less than 60 years 
Cumulative statutory contribution rate of 24% (13% employer's share and 11% employee's share) for employees earning a monthly salary / wage of RM5,000.00 and below and cumulative statutory contribution rate of 23% (12% employer's share and 11% employee's share) for employees earning a monthly salary / wage above RM5,000.00 
 
For both wage categories (a) and (b) above, coverage has been extended from age 55 to 60 years; subject to the salary/wage in Part A, Third Schedule, EPF Act 1991.
 
b. Employees aged 60 years and above, up to 75 years
Cumulative contribution rate for those aged between 60-75 years, is half (50%) of the statutory contribution rates for both employees and employers stipulated above; subject to the salary / wage in Part C, Third Schedule, EPF Act 1991.
 

Rates of employee's and employer's contributions since 1952 are as follows:

Year

Employer's Share Contribution

Employee's Share Contribution

Total

1952 - Jun 1975

5%

5%

10%

Jul 1975 - Nov 1980

7%

6%

13%

Dec 1980 - Dec 1992

11%

9%

20%

Jan 1993 - Dec 1995

12%

10%

22%

Jan 1996 - Mar 2001

12%

11%

23%

Apr 2001- Mar 2002

12%

9%

21%

Apr 2002 - May 2003

12%

11%

23%

Jun 2003 - May 2004

12%

9%

21%

Jun 2004 - Dec 2008

12%

11%

23%

Jan 2009 - Dec 2010

12%

8%

20%

Jan 2011 - Dec 2011

12%

11%

23%

Jan 2012 - present

13% @ 12%

Subject to monthly wage/salary of RM5,000

11% 24% @ 23%

The EPF contributions must be paid in full Ringgit and no sen is allowed.

Employee's Share Contribution

The employer must deduct the employee's wage for the employee's share contribution at the time the wage is paid.

Employer's Share Contribution

The employer's share contribution is the payment from employer and cannot be deducted from employee's wage.

When Must Contribution Be Paid

Contribution for a particular month must be paid before or on the 15th after the month of the wage is paid.

Example:

Contribution for the month of February (deducted from January wage) and Form KWSP 6 (Form A) for February must be paid to the EPF before or on 15 February.

 

Updated: 5 August 2013