- Overview of EPF
The Employees' Provident Fund (known by its acronym EPF, or KWSP in Malay) is a Malaysian government agency that manages a compulsory savings plan and retirement planning for private and non-pensionable public sector employees.
The EPF functions through monthly contributions from employees and their employers towards saving accounts. While in savings these funds may be used in various investments by the EPF or, in some cases, by the members themselves.
- Contribution Rate (employer, employee, non-Malaysian)
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.
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. You may opt to contribute more; please click here to find out how.
Please note, effective from January 2021 wages (February 2021 contribution) until December 2021 wages (January 2022 contribution), the contribution rate was reduced from 11% to 9% for employees aged under 60. However, an employee can maintain their contribution rate at 11% - for more info please click here. If the contribution is maintained at 11%, the previous EPF Contribution Table applies.
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 ~9% of their monthly salary
- Employer contributes ~13% of the employee's salary
Monthly salary greater than RM5,000:
- Employee contributes ~9% 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: ~9% 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
What is the deadline for the payment of EPF?
If contributions are made later than the 15th of the following month (if the 15th is a public holiday, then the deadline is extended to the next working day), interest will be charged for late payment of contribution as follows:
- Interest: The interest rate imposed is calculated based on the dividend rate declared by the EPF Board for each respective year with an additional one (1) percent. The minimum interest imposed is RM 10. Any total for the interest with sen must be rounded up to the nearest higher Ringgit. Example: If the interest imposed is RM 13.21 this must be rounded up to RM 14.
If the contribution is made later than the last day of the following month then there will be a dividend charge in addition to the interest. This dividend charge will be added to the employee’s EPF saving account.
- Dividend: The dividend rate imposed is calculated based on the dividend rate declared by the EPF Board for each respective year.
How to pay for EPF?
EPF submission and payment can be made either via e-Caruman or online banking. For payment via e-Caruman, you are required to have an account with KWSP i-Akaun. Meanwhile for online banking, you will need to upload the EPF payment bank file via your bank portal. For JustLogin users, files for both EPF submission methods can be generated upon payroll submission.
- How to submit/pay EPF via e-Caruman
Log in to KWSP i-Akaun to submit all employee contribution details online. Under the Contribution section, choose Submission of EPF Contribution (Form A). If the form is already submitted, you can choose Payment Only and proceed with payment.
Next, you are required to choose a form type for submission.
- Preprinted Form A:
You can use the latest Form A that you have submitted online before for the previous month's contribution payment. You can proceed with payment if there are no changes, or you can make the changes before you continue with submission and payment.
- Blank Form A:
It is a blank form A which you are required to fill in with the contribution details of the employees.
- Upload Form A data by using Comma Separated Value (CSV) format:
If you are a JustLogin user, you can obtain the generated csv file upon payroll submission.
- Upload Form A data by using CD/Diskette (EPFORMA.TXT/EPFORMA2.TXT) format:
Employers are required to prepare a CD/ Diskette with the contribution information.
- For the contribution payment via e-Caruman, you can select your preferred payment method from the 4 payment options:
- You can opt to pay directly via the bank website
- You can make payment via FPX (non-approval flow).
- You can make payment via direct debit (only for employers who have registered DDA).
- You can make payment at EPF/Bank counters.
NOTE:
Know more about Malaysian Payroll Statutory Contributions:
SOCSO - https://support.justlogin.com/hc/en-us/articles/4404834346381-SOCSO-JustLogin-Malaysia-Payroll
EIS - https://support.justlogin.com/hc/en-us/articles/4404834587661-EIS-JustLogin-Malaysia-Payroll
PCB - https://support.justlogin.com/hc/en-us/articles/4404835521933-PCB-JustLogin-Malaysia-Payroll
Form to be submitted Yearly by Malaysian companies - https://support.justlogin.com/hc/en-us/articles/4404836735245-Forms-that-Malaysian-Companies-need-to-Prepare