7% EPF rate for workers starts in April

PETALING JAYA: Beginning April, the employee’s share of the statutory contribution to the Employees Provident Fund (EPF) will be reduced from 11% to 7%.

EPF said the new rate, which will be in effect until December, was in line with the incentive in the Economic Stimulus Package 2020 announced by the government recently.

“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.

“The new statutory contribution rate for employees applies to those below 60 who are required to make the contribution.

“The statutory contribution rate for employees aged 60 and above, however, remains unchanged, ” EPF said in a statement yesterday.

However, employees may choose to maintain the current contribution rate of 11% by completing Borang KWSP 17A (Khas 2020) that would be made available on epf.gov.my at a later date.

“This form must be submitted to the EPF via employers and will take effect from the following month, ” it said.

For more information, contributors and employers may refer to the EPF website at epf.gov.my, call the EPF Contact Management Centre at 03-8922 6000, or visit any EPF branch.