Under EPF rules, both employee and employer contributions are payable. Employee contributions are deducted from the employee’s salary and paid to KWSP together with the employer contributions. Although the contribution rates are usually featured as a percentage of the salary subject to EPF, the percentage is approximate and the actual contributions must be taken from the EPF Contribution Table.
All employees must contribute until the age of 75 with no minimum age. From the age of 60, only employer contributions are payable. The EPF contribution rates vary according to the employee’s age and whether they are a Malaysian/permanent resident. Foreigners who are not permanent residents are not obligated to contribute and different rates may apply if they do.
Below are the minimum rates of contribution.
Employees aged under 60
For Malaysians and Permanent Residents, and for Non-Malaysians registered as members before 1 August 1998 (section A of EPF Contribution Table):
Monthly salary of RM5,000 or less:
- Employee contributes ~11% of their monthly salary
- Employer contributes ~13% of the employee’s salary
Monthly salary greater than RM5,000:
- Employee contributes ~11% of their monthly salary
- Employer contributes ~12% of the employee’s salary
For Non-Malaysians registered as members from 1 August 1998 (section B of EPF Contribution Table):
- Employees share: ~11% of their monthly salary
- Employer’s share: RM5.00
Employees aged 60 and above
For Malaysians (section E of EPF Contribution Table):
- Employee contributes 0% of their monthly salary
- Employer contributes ~4% of the employee’s salary
For Permanent Residents, and for Non-Malaysians registered as members before 1 August 1998 (section C of EPF Contribution Table):
Monthly salary of RM5,000 or less:
- Employee contributes: ~5.5% of their monthly salary
- Employer contributes: ~6.5% of the employee’s salary
Monthly salary greater than RM5,000:
- Employee contributes: ~5.5% of their monthly salary
- Employer contributes: ~6.0% of the employee’s salary
For Non-Malaysians registered members from 1 August 1998 (section D of EPF Contribution Table) :
- Employees share: ~5.5% of their monthly salary
- Employer’s share: RM5.00
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