EPF reduces statutory contribution rate to 9%

by TMR/ FILE PIX

THE Employees Provident Fund (EPF) announced that for the year 2021, the employee’s share of the statutory contribution rate will be reduced from 11 per cent to nine (9) per cent.

This new statutory contribution rate for employees applies only to members below 60 years old who are liable for contribution.

For members aged 60 years old and above, the statutory contribution rate for employees remains unchanged.

EPF said the new rates will be in effect for an entire year, affecting wages for the months of January 2021 (February 2021’s contribution) up to December 2021 (January 2022’s contribution).

“Members who wish to maintain the contribution rate for employees at 11 per cent may fill in the Borang KWSP 17A (Khas 2021) form, which will be made available on the EPF website (www.kwsp.gov.my) starting 1 December 2020,” it said in a statement today.

The completed form must be submitted to their respective employers for online registration via i-Akaun (Employer), which will begin from 14 December 2020.

Employers are also required to keep the form received for their record.

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