Reduction In Employees’ Statutory Contribution Rate 2016
KUALA LUMPUR, 28 January 2016: Following Prime Minister YAB Datuk Seri Najib Tun Abdul Razak’s announcement during the presentation of the revision of Budget 2016 today, the Employees Provident Fund (EPF) announces the reduction in the employees’ monthly statutory contribution rate from 11% to 8% for members below age 60 and 5.5% to 4% for those age 60 and above, effective March 2016 until December 2017 salary.
However, members can opt to maintain the current contribution rate of 11% by completing the “Notis Pilihan Mencarum Melebihi Kadar Berkanun (KWSP 17A Khas2016)” and submit to their respective employers, who will then forward it to the nearest EPF branch.
Members and employers can download the Notis KWSP 17A Khas2016 from the EPF’s website at new.epf.gov.my from 2 February 2016 onwards. The new monthly contribution rate (Schedule Three) can be downloaded from 16 February 2016 onwards.
There is no change to the employers’ statutory contribution rates.
The Employees Provident Fund (EPF) is Malaysia’s premier retirement savings fund to help its members achieve adequate savings for a comfortable retirement. This is in line with EPF’s vision to help members achieve a better future and the mission to safeguard members’ savings and deliver excellent services. The EPF has evolved significantly from transaction-centric to a professional fund management organisation with a strong focus on retirement security. The EPF is guided by a robust and professional governance framework when making investment decisions. It continues to play a catalytic role in the nation’s economic growth and seeks to cultivate a savings and investment culture among its members to improve the country’s financial literacy level.