KUCHING, March 6: The reduced Employees Provident Fund (EPF) contribution rate from 11 per cent to 7 per cent will take effect in the employee’s salary in April 2020 (May 2020’s contribution) until the end of the year.
According to a statement from EPF’s website, this was subject to the Third Schedule of the EPF Act 1991 and the new rate will apply to those below 60 years old who are liable for contribution.
“The statutory contribution rate for employees aged 60 years old and above however, remains unchanged,” the statement said.
However, employees could opt to maintain the contribution rate at 11 per cent by completing a special form (Borang KWSP 17A), which must be submitted to the EPF through their employers and it will take effect the following month.
The form will be made available on www.kwsp.gov.my for download at a date which will be made known later.
The reduced EPF contribution from 11 per cent to 7 per cent was part of the government’s economic stimulus package intended to cushion the blow from the economic fallout following the global Covid-19 outbreak.
The stimulus package was announced by then interim prime minister Tun Dr Mahahtir Mohamad in Putrajaya on Feb 27.
Currently, employees contribute 11 per cent of their salary to the fund, while employers must put in a minimum of 12 per cent for salaries more than RM5,000 and 13 per cent for salaries lower than that.
For employees above the age of 60, the minimum employers’ share of EPF statutory contribution rate is 4 per cent, while the employees’ share of the contribution rate is 0 per cent.
For more information, members and employers may refer to the EPF website at kwsp.gov.my, call the EPF Contact Management Centre at 03-8922 6000, or visit any EPF branch. — DayakDaily
