Employee Statutory Contribution Rate To Revert To 11% Starting January 2018 Salary
The Employees Provident Fund (EPF) informs that the reduction of the statutory contribution rate for employees’ share to eight (8) per cent, which started for March 2016 wage/salary (April contribution), will end at the end of December 2017 wage/salary (January 2018 contribution). The reduction of contribution rate was announced by the Government in 2016 following the tabling of the revision of Budget 2016 by Y.A.B. Prime Minister Datuk Seri Najib Razak.
Effective January 2018 wage/salary (February 2018 EPF contribution), the statutory contribution rate for employees’ share will revert to the original 11 per cent for members below age 60, and 5.5 per cent for those aged 60 and above.
Employers are required to ensure the right amount of contributions are deducted from their employees’ salary and remitted to the EPF in accordance with the new contribution rates. The latest contribution rates for employees and employers can be referred at the Third Schedule, EPF Act 1991.
Members who wish to contribute more than the statutory rate of 11 per cent or 5.5 per cent may do so by completing Form KWSP 17A (AHL) or Form KWSP 17AA (AHL).
For more information, members and employers may refer to the EPF website at new.epf.gov.my or call the EPF Contact Management Centre at 03-8922 6000, or visit any nearest EPF branch.