EPF is defined as the Employers Provident Fund, where all Malaysian employees are entitled to make contribution to upon being employed at their respective organisation.
This contribution will be deducted by the employers from their employees monthly wage under a certain percentage intended by the respective individuals.
As per a recent anouncemant, the employee’s statutory contribution rate to the Employers Provident Fund (EPF) will be decreased to 9 percent from 11 percent beginning next year onwards.
The statement was made by the EPF board, and confirmed that the new EPF contribution will only be applied to employees below the age of 60 and the remittance for employees above the age of 60 however remains unchanged.
The new standards will be implied in 2021, impacting salaries from January 2021 to December 2021.
For members aged 60 years old and above, the statutory contribution rate for employees remains unchanged. The new rates will be in effect for an entire year, affecting wages for the months of Jan 2021 (Feb 2021’s contribution) up to Dec 2021 (Jan 2022’s contribution).
Members preferring to maintain the employee contribution rate at 11 percent should fill in the Borang KWSP 17A (Khas 2021) that will be made accessible on the EPF website from 1st December onwards.
EPF further announced that;
The completed form must then be submitted for online registration via i-Akaun (Employer) to by their respective employers, starting from 14th December. Employers are also expected to keep the form acquired for their own personal record.
Due to the on-going pandemic that seems to be seeing no end, employees will only be able to obtain the form online via their respective i-Akaun. This is due to EPF’s efforts to ensure physical distance and minimise face-to-face interactions to prevent the spread of Covid-19.
