by TMR / pic by MUHD AMIN NAHARUL
The government has reduced the minimum statutory contribution rate for employees from 11% to seven per cent to spur the economy impacted by the deadly coronavirus outbreak.
The Employees Provident Fund (EPF) said the new rate will take effect starting April 1, 2020 until the end of the year and affects members below age 60.
“The move to reduce the statutory contribution rate is part of the government’s economic stimulus package intended to cushion the blow from the economic fallout following the global COVID-19 outbreak,” EPF said in a statement.
The pension fund said for those aged 60 and above, the employees’ share of the contribution rate will remain at zero per cent.
The government’s move could potentially deliver up to RM10 billion of liquidity into the economy.
EPF said employers are required to ensure the correct amount is deducted from their employees’ wage/salaries.
However, employees may choose to maintain the current contribution rate of 11% by completing Notis Pilihan Mencarum Melebihi Kadar Berkanun KWSP 17A (Khas) which is available on the pension fund’s website.
This notice must be presented to employers to be submitted to the EPF, the fund said. – TMR