NO | QUESTIONS & ANSWERS |
---|---|
1 |
Following the Budget 2021 announcement, what is the new statutory contribution rate for employees? |
The new statutory contribution rate for employees is at 9% of monthly wages (reduction of 2% from the original 11%). |
|
2 |
Who is affected by the newly reduced employee’s contribution rate? |
Only employees who have yet to reach 60 years old are affected by the reduction on statutory contribution for employees. |
|
3 |
Will the new statutory rate affect contribution from those aged above 60? |
NO. |
|
4 |
How will this reduction on statutory contribution rate impact employees? |
Employees will enjoy a higher take home pay but with lower contribution into their EPF savings within the same month. |
|
5 |
When will the new statutory contribution rate for employees take effect? |
The new statutory contribution rate for employees will be in effect from January 2021 wages (February 2021 contribution) up to December 2021 wages (January 2022 contribution). |
|
6 |
What will be the contribution amount following the new statutory rate for employees and where can I find out on that? |
The total contribution amount following the new statutory contribution rate for employees are as per the Third Schedule of the EPF Act 1991. For reference:
The Third Schedule will be available on EPF website www.kwsp.gov.my beginning 15/12/2020 |
|
7 |
Can employees choose to maintain their statutory contribution rate at 11%? |
YES, they can. |
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8 |
What are the steps for employees to maintain their statutory contribution rate at 11%? |
|
|
9 |
Where can I download the Borang KWSP 17A form? |
The Borang KWSP 17A (Khas 2021) form can be downloaded from the EPF website www.kwsp.gov.my beginning 01/12/2020. |
|
10 |
Will this new statutory contribution rate affect the employer’s share? |
NO. |
|
11 |
When will the application for employees to contribute above the statutory rate (via the Borang 17A (Khas 2021) form) take effect? |
The application for employees to contribute above the statutory rate will be in effect from January 2021 wages OR for wages on the month following the registration made by employers on the i-Akaun (Employer). |
|
12 |
Will the submission of the Borang KWSP 17A (Khas 2021) form for employees to contribute above the statutory rate void the pre-existing application made via the Borang KWSP 17A (AHL) form? |
Any pre-existing application to contribute above the statutory rate made via the Borang KWSP 17A (AHL) form will NOT BE VOIDED and remains in effect. |
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13 |
How can employees check to ensure that their employers have remitted the right contribution amount according to what they opted for? |
Employees can check for their total contribution by referring to their EPF account statements available on i-Akaun (Member). |
|
14 |
If I self contribute, will the new statutory rate apply on me? |
NO. |
NO | QUESTIONS & ANSWERS |
---|---|
1 |
How can employers submit their employees’ application to maintain their statutory contribution rate at 11%? |
Upon receiving the completed Borang KWSP 17A (Khas 2021) form from their employees, employers will need to register the application via the i-Akaun (Employer). |
|
2 |
Can employers choose not to register the application made by employees to maintain their statutory contribution rate at 11%? |
NO, you cannot. |
|
3 |
Will the EPF require the original copy of Borang KWSP 17A (Khas 2021)? |
NO. |
|
4 |
I am an employer. I have many employees in my organisation. All my employees have chosen to maintain the contribution rate at 11%. Can I fill in only 1 form for the entire organisation? |
YES, you can. |
NO | QUESTIONS & ANSWERS |
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ACCOUNT 2 WITHDRAWAL FOR INSURANCE AND TAKAFUL PURPOSES | |
1 |
What does this facility entail? |
The EPF will be allowing members to withdraw funds from their Account 2 to purchase insurance and takaful products from EPF approved Insurance Companies and Takaful Operators via i-Akaun. |
|
2 |
What products will be offered to members under this facility? |
The products will be customised for EPF members at affordable premiums/contributions with additional features, covering life insurance/family protection and critical illness. |
|
3 |
When will this facility be available for members? |
The EPF is still fine-tuning the details of this facility with various parties, as it requires a change to our system and an amendment to the 1991 EPF Act & 1991 EPF Rules. More information on this facility will be announced by the EPF. |