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Epf contribution by employers to increase by 1% to 13% w.e.f Jan 2012

1. Employer’s EPF Statutory Contribution is 13% for Employees Earning Up to RM5,000/month

a. The employer’s EPF statutory contribution rate for employees earning RM5,000 and below a month effective from January 2012 wages (February 2012 contribution) onwards is as follows:

Below 55 years old @ 13%. Old rate is 12%

55 -75 years old @ 6.5%. Old rate is 6%

b. Entitlement to the 13% contribution rate is based on monthly total earnings i.e. basic wages and all other wage components under EPF.The new ruling does not apply to those earning basic salary of more than RM 5000.00/month

c. The employer may retain the current contribution rate if the rate is higher than the new statutory contribution rate. However, if employment terms indicate that the employer shall contribute extra on top of the statutory rate, then the new contribution rate is the extra rate plus 1%.

d. The employee’s statutory contribution rate remains at 11% for all employees below 55 years and 5.5% for those aged 55 to 75 years.

If you still had not nominated a beneficiary , please do so by by visiting EPF here