Heads up, Malaysians!
It looks like the Employees Provident Fund (EPF) will be changing its employee statutory contributions rate back from 8 per cent to its original 11 per cent.
Effective for salaries from January 2018 (February 2018 EPF contribution) onwards, this change will see a reversion to 11 per cent for employees aged below 60 and 5.5 per cent for employees aged 60 and above.
Source: MMO
According to The Sun Daily, the 8 per cent contribution rate introduced last year will end at the end of December 2017 wage (January 2018 contribution).
An excerpt from EPF’s statement reads,
“Employers are required to ensure the right amount of contributions are deducted from their employees’ salary and remitted to the EPF in accordance with the new contribution rates.”
“The latest contribution rates for employees and employers can be referred at the Third Schedule, EPF Act 1991.”
Source: The Star
This announcement comes after four recent amendments were made to their policies and schemes. One amendment in question allows members to partially withdraw any amount from their account at any time starting 1st January 2018.
Also, those who want to contribute more than the statutory rate of 11 per cent or 5.5 per cent can complete Form KWSP 17A (AHL) or Form KWSP 17AA (AHL). Check out their website here for more details.
So, take note of these changes when you get your pay slips next year!
Also read: Starting January 2018, EPF Members Can Partially Withdraw Any Amount Any Time
