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Reduction of Statutory Contribution Rate for Employees

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Reduction of Statutory Contribution Rate for Employees

KUALA LUMPUR, 5 March 2020: With reference to the Government’s announcement on the 2020 Economic Stimulus Package on 27 February 2020 with regards to the new statutory contribution rate for employees, the Employees Provident Fund (EPF) would like to clarify that the employee’s share of the statutory contribution rate will be reduced from 11 per cent to seven (7) per cent.

Additional clarifications with regards to this reduction are as follows:

1.    The new statutory contribution rate for employees will affect April 2020’s wage (May 2020’s contribution) up to December 2020’s wage (January 2021’s contribution) subject to the Third Schedule of the EPF Act 1991.

2.    The new statutory contribution rate for employees applies 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.

Option to maintain employee contribution rate of 11 per cent 

Members may choose to maintain the employee contribution rate at 11 per cent by completing Borang KWSP 17A (Khas 2020). This form must be submitted to the EPF via employers and will take effect from the following month. This form will be made available on kwsp.gov.my at a date which will be made known later.

For more information, members and employers may refer to the EPF website at kwsp.gov.my or contact the EPF Contact Management Centre at 03-8922 6000.

Please download KWSP Form 17A from here: LAMPIRAN 2 – Borang KWSP 17A (Khas 2020) (Excel)

Issued by the EPF Media Desk

Corporate Affairs Department

[email protected]

5 March 2020

 

Source from: https://www.kwsp.gov.my/-/reduction-of-statutory-contribution-rate-for-employees

Step to maintain employee contribution rate of 11%

  1. Download the KWSP 17A (Khas 2020) Form
  2. Fill up the details into form (Employer KWSP Number, Employer Name and Employees details, Company Chop & Sign etc)
  3. Submit the filled up form and email to [email protected] (Please include VE2020 in the email subject line for acceptance and processing)

Please download KWSP Form 17A from here: LAMPIRAN 2 – Borang KWSP 17A (Khas 2020) (Excel)

About the Employees Provident Fund (EPF)

The Employees Provident Fund (“EPF”) is one of the oldest retirement funds in the world. Established in 1951, the EPF is a Member-Linked Company (MLC) focused on a mission to safeguard member savings and deliver excellent services. In recent years, in line with its vision of helping members achieve a better future, the EPF has expanded its role to encompass the creation of a comprehensive social well-being ecosystem. Today, the EPF remains steadfast in its commitment to members through consistent efforts to update and improve itself, in order to build the foundation for sustainable, holistic and equitable well-being for all Malaysians.

 

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