Epf Employer Contribution Rate 2020 Malaysia

Kuala lumpur 12 october 2019.

Epf employer contribution rate 2020 malaysia. As announced by the former interim prime minister the employees provident fund epf contribute rate will be reduced from 11 to 7 as part of the initiative under the economic stimulus package 2020. Malaysia slashes minimum epf employee contribution rate to 7. Please bear in mind that the contribution amount should be calculated based on the contribution rate as stated in the third schedule of the epf act 1991 instead of using the exact percentage calculation except for salaries that are more than rm20 000 00. The 7 contribution rate will take effect from 1st april 2020 until the end of 2020 and it will be applicable to all epf members under 60 years of age that are subject to statutory contribution.

Kuala lumpur feb 27 the minimum contribution rate under the employees provident fund epf will be cut from 11 per cent to 7 per cent from april 1 until december 31 this year with the aim of potentially unlocking up to rm10 billion worth of spending by. Picture by shafwan zaidon. Kwsp epf contribution rates. Daniel teo march 2 2020.

However contribution rates for employees aged 60 years old and above remain unchanged. The employees provident fund epf notes that budget 2020 takes into account fast changing demographics the changing definitions of work and the work environment and the issues surrounding social well being generally. The malaysian government has reduced the minimum employee contribution rate for the employees provident fund epf from 11 to 7. The contribution rates stated in this table are not applicable to non malaysians registered as epf members before 1 august 1998.

Employees who receive wages salary exceeding rm5 000 the employee s contribution of 11 remains while the employer s contribution is 12. Pursuant to the government s recent 2020 economic stimulus package the new minimum epf contribution rate for employees below 60 years old will be reduced from 11 to 7. The new statutory contribution rate for employees will impact wages paid for april until december 2020 which are reflected in epf contribution submissions from may 2020 till january 2021. Monthly contribution rate third schedule the latest contribution rate for employees and employers effective january 2019 salary wage can be referred in thethird schedule epf act 1991 employers are required to remit epf contributions based on this schedule.

For employees who receive wages salary of rm5 000 and below the portion of employee s contribution is 11 of their monthly salary while the employer contributes 13. Thursday 27 feb 2020 05 50 pm myt. This is boost spending to mitigate the economic impact of the covid 19 outbreak. Interim prime minister tun mahathir mohamad speaks during the economic stimulus package announcement at perdana putra building in putrajaya february 27 2020.

Your mandatory contribution is calculated based on your monthly salary as an employee in accordance with the contribution rate third schedule monthly contributions are made up of the employee s and employer s share which is paid by the employer through various methods available to them. For employees who receive wages salary of rm5 000 and below the portion of employee s contribution is 11 of their monthly salary.