Last updated : 30 Nov 2019 
As an employer, your responsibilities includes paying EPF contributions in respect of any person you have engaged to work under a Contract of Service or Apprenticeship. You have to ensure accurate monthly contributions are deducted from your employees’ salary and remitted to EPF.
Subject to the provisions of section 52, every employee and every employer of a person who is an employee within the meaning of this Act shall be liable to pay monthly contributions on the amount of wages at the rate respectively set out in the Third Schedule.
Section 43(1), EPF Act 1991
Employer must make monthly payment on or before 15th of the month.
Example:
Salary for January 2018
Therefore, the Contribution Month is February 2018 and it has to be paid either before or on 15 February 2018.
The employer needs to pay both the employees’ and the employer’s share to the EPF. Employers may deduct the employee’s share from their salary.
| Employee’s Status | Monthly Salary Rate | Stage 1 (Below 60 years old) |
Stage 2 (Age 60 and above) |
|---|---|---|---|
|
No limit |
|
|
| RM5,000 and below | Employees share: 11% Employer’s share: 13% (Ref Contribution Rate – Section A) |
|
|
| More than RM5,000 | Employees share: 11% Employer’s share: 12% (Ref Contribution Rate – Section A) |
|
|
|
Non-Malaysians (registered as member from 1 August 1998) |
No limit | Employees share: 11% Employer’s share: RM5.00 (Ref Contribution Rate – Section B) |
Employees share: 5.5% Employer’s share: RM5.00 (Ref Contribution Rate – Section D) |
Employers are not allowed to calculate the employer’s and employee’s share based on exact percentage EXCEPT for salaries that exceed RM20,000.00. The total contribution which includes cents shall be rounded to the next ringgit.
Calculation Sample
| Item | Salary | Employer’s Share (12%) | Employee’s Share (11%) | Total (23%) | Calculation type |
|---|---|---|---|---|---|
| Calculation based on Contribution Rate (Third Schedule) | RM6,250.00 | RM756.00 | RM693.00 | RM1,449.00 | Accurate calculation |
| Calculation based on exact percentage | RM6,250.00 | RM750.00 | RM688.00 | RM1,438.00 | Inaccurate calculation |
The latest contribution rate for employees and employers effective January 2019 'salary/wage' can be referred in theThird Schedule, EPF Act 1991. Employers are required to remit EPF contributions based on this schedule.
For late contribution payments, employers are required to remit contributions in accordance with the third schedule as attached below by referring to the applicable effective date. Please click on the hyperlinks below for employee and employer contribution rates:
In the event that the employer fails to pay the contributions within the prescribed period, this contribution will be considered as an outstanding contribution. Under certain circumstances, the EPF will make an assessment of the contribution.
The EPF Officer will provide Form KWSP 7 (Form E) and Form KWSP 8 (Form F). Payment must then be made using Form KWSP 8 (Form F).
For unpaid outstanding contributions, payments can be made using Form A (Online).
| Late Payment Charge | Dividend |
|---|---|
|
The lower dividend rate between Simpanan Konvensional and Simpanan Shariah for each respective year with an additional one (1) percent. Example: The late payment charge imposed is RM13.21 and this must be rounded up to RM14. |
Dividend rate is calculated based ont the lowest dividend declared between the Simpanan Konventional and Simpanan Shariah. For the year 2016 and prior, Simpanan Konventional's dividend rate is used for the calculation of late payment charge and dividends. |
While there are employees who are exempted from contributing, they are still allowed to elect to make a contribution. When an employee listed below has opted to make a contribution, both such employee and employer shall be liable to contribute and the option may not be revoked.
Working in a residential home and employed by a private individual
Form KWSP 16 submitted to the EPF with a copy to the employer
Who are employed and whose country of domicile is outside Malaysia and who enter and stay in Malaysia temporarily under provisions of any written laws relating to immigration.
Form KWSP 16B submitted to the EPF with a copy to the employer
The employer or the employee, or both, may choose to contribute more than the stipulated rates under the Third Schedule to the EPF Act 1991.
The last rate that you opt for will be your new contribution rate and will remain as so until you and/or your employer submits a cancellation notice.
Example of employer opting to pay a contribution of 5% above the rate set for the employer's share:
| Salary | Employee | Employer | Payable Contribution | ||
|---|---|---|---|---|---|
| Contribution Rate | Voluntary Excess | ||||
| A | B | C | A+B+C | ||
| Employees aged below 60 years old and earns a salary of less than RM5,000 | RM1,000 | 11% = RM110 | 13% = RM130 | 5% = RM50 | RM290 |
| Employees aged below 60 years old and earns a salary of more than RM5,000 | RM6,250 | 11% = RM693 | 12% = RM756 | 5% = RM312.50 | RM1,761.50 = RM1,762 (rounded to the next ringgit) |
| Employees aged 60 and over with a salary of less than RM5,000 | RM1,000 | 0% = RM0 | 4% = RM40 | 5% = RM50 | RM90 |
| Employees aged 60 and over with a salary of more than RM5,000 | RM6,250 | 0% = RM0 | 4% = RM252 | 5% = RM312.50 | RM564.50 = RM565 (rounded to the next ringgit) |
*Contribution Rate (Third Schedule), EPF Act 1991
Example of member opting to contribute 5% more than the employee’s share
| Salary | Employee | Employer | Payable Contribution | ||
|---|---|---|---|---|---|
| Contribution Rate | Voluntary Excess | ||||
| A | B | C | A+B+C | ||
| Employees aged below 60 years old and earns a salary of less than RM5,000 | RM1,000 | 11% = RM110 | 5% = RM50 | 13% = RM130 | RM290 |
| Employees aged below 60 years old and earns a salary of more than RM5,000 | RM6,250 | 11% = RM693 | 5% = RM312.50 | 12% = RM756 | RM1,761.50 = RM1,762 (rounded to the next ringgit) |
| Employees aged 60 and over with a salary of less than RM5,000 | RM1,000 | 0% = RM0 | 5% = RM50 | 4% = RM45 | RM90 |
| Employees aged 60 and over with a salary of more than RM5,000 | RM6,250 | 0% = RM0 | 5% RM312.50 | 4% = RM252 | RM564.50 = RM565 (rounded to the next ringgit) |
*Contribution Rate (Third Schedule), EPF Act 1991
Submit Form
KWSP 17A (AHL) OR KWSP 17AA (AHL) for employers with more than one employee
Submit Form
KWSP 17 (MAJ)
Submit Form KWSP 17A (AHL) and KWSP 17 (MAJ) respectively
The contribution must be paid rounded to the ringgit and may not be backdated.
| Form KWSP 17A (AHL) OR KWSP 17AA (AHL) | Form KWSP 17 (MAJ) | |
|---|---|---|
| Employee's share only (Individual) |  |
 |
| Employer's share only (Group) | |
|
| Employer's share only | |
|
| Employee's and Employer's share | |
|
If you are the owner of a sole proprietorship, a self-employed individual, a business partner or a retired worker who fulfils any of the criteria below, you have the option to contribute voluntarily.
The last rate you opted for will be the new statutory rate and shall remain so until you and/or your employer submit a notice of cancellation using Form KWSP 18A (AHL) and Form KWSP 18 (MAJ) respectively. Upon receipt of the notification, the rate of contribution will be reverted to the current statutory rate.
The employer must pay their employee's contributions on or before the 15th of the following wage month.
The employer must initially pay to the EPF both his and the employee's shares. However, the employer may recover the employee's share of the contribution by deducting it from the employee's wage when the wage is paid to the employee.
To ensure the accuracy and efficiency of crediting to member’s account, employer should ensure:
Note:
Employer is responsible of submitting contribution form (Form A) together with payment for crediting purpose to member's account.
Employers are encouraged to use e-Caruman for faster and easier monthly contribution submission and payments.
| Payment Channel | Payment Mode |
|---|---|
|
i-Akaun (Employer) Employers can submit contribution data and/or make contribution payments online |
Maybank2u Financial Process Exchange (FPX) Direct Debit Authorisation (DDA)
|
Employers are encouraged to use e-Caruman for faster and easier monthly contribution submission and payments.
| Payment Channel | Payment Mode |
|---|---|
|
e-Caruman app Employers can submit contribution data and make contribution payments online |
Financial Process Exchange (FPX) |
Employers may also submit Form A accompnied with the monthly contribution payments via Internet Banking.
| Payment Channel |
|---|
|
Internet Banking Note: Employers need to activate their internet banking account for this purpose. |
Monthly contribution payments (Form A), late payment charges and dividends can be made through any appointed bank agents.
Payments can also be made through any bank branches when employers bring along their particular contribution forms.
| Payment Channel | Payment Mode |
|---|---|
|
Bank Agents Type of payments:
|
Cash/Cheque/MyDebit Corporate Card List of Banks
|
Employers may also submit their form accompanied with the monthly contribution payments at any EPF Counter nationwide.
| EPF Counter | Payment Mode |
|---|---|
|
Cash/Cheque |
Note:
FAQ