Belanjawan 2021

BELANJAWAN 2021

FAQ

  • Members
    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.

    For those aged 60 and above, the statutory contribution for employees remains at the existing rate.

    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:

    1. Malaysian employees who have yet to reach 60 years old (Section A – Third Schedule).
    2. Non-Malaysian employees who have yet to reach 60 years old (Section B – Third Schedule).
       

    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.

    Employees can choose to maintain their statutory rate of contribution at 11% by submitting the Borang KWSP 17A (Khas 2021) form, to their respective employers.

    8

    What are the steps for employees to maintain their statutory contribution rate at 11%?

    1. Employees are required to fill in the Borang KWSP 17A (Khas 2021) form.
       
    2. Employees will need to submit the completed Borang KWSP 17A (Khas 2021) form to their employers.
       
    3. Employers will then be required to key in their employees’ application online via i-Akaun (Employer).

      (Despite employees being able to submit the Borang KWSP 17A (Khas 2021) form as early as 01/12/2020, employers are only allowed to key in on i-Akaun (Employer) starting from 14/12/2020)
       
    4. Employers need to keep the completed Borang KWSP 17A (Khas 2021) form as a record.
       
    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.

    The employer’s share of contribution remains at the existing statutory rate.

    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).

    Note :
    The application for employees to contribute above the statutory rate cannot be cancelled once they have submitted the Borang KWSP 17A (Khas 2021) form.

    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.

    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.

    Self contribution is still subject to a maximum amount of RM60,000 yearly.

  • Employers
    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).

    Employers need to keep the completed Borang KWSP 17A (Khas 2021) form as a record.

    Note: Despite employees being able to submit the Borang KWSP 17A (Khas 2021) form as early as 01/12/2020, employers are only allowed to key in on i-Akaun (Employer) starting from 14/12/2020

    2

    Can employers choose not to register the application made by employees to maintain their statutory contribution rate at 11%?

    NO, you cannot.

    Employers are required to register their employees’ application via the i-Akaun (Employer) and allocate the 11% statutory contribution as opted by their employees.

    3

    Will the EPF require the original copy of Borang KWSP 17A (Khas 2021)?

    NO.

    The completed Borang KWSP 17A (Khas 2021) form is to be kept by the employers as a record.

    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.

    The Borang KWSP 17A (Khas 2021) form is uploaded in excel format for the convenience of employees and employers.

 

NO QUESTIONS & ANSWERS
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.