KUALA LUMPUR, March 5 ― The reduced Employees Provident Fund (EPF) contribution rate from 11 per cent to seven per cent under the Economic Stimulus Package 2020 will take effect in the employee’s salary in April 2020 (May 2020 contribution), until the December 2020 salary (January 2021 contribution).
In a statement issued today, the EPF said this was subject to the Third Schedule of the EPF Act 1991 and the new rate of statutory contribution by employees was applicable to those under 60 years of age who are subject to statutory contribution.
“The rate of statutory contribution for employees aged 60 years and above remain the same,” the statement said.
“Employees may choose to maintain the current contribution rate of 11 per cent by completing Borang KWSP 17A (Khas 2020) which must be submitted to EPF through their employers, and is effective in the following month.
The form can be downloaded through the website on a date which will be announced soon.
The reduced rate of contribution from 11 per cent to seven per cent is part of the government's economic stimulus package intended to cushion the blow from the economic fallout following the global Covid-19 outbreak. ― Bernama