Nation

EPF: Employee contribution rate reduced to 9 per cent

KUALA LUMPUR: The statutory contribution rate for employees in 2021 will be reduced from 11 per cent to nine per cent, said the Employees Provident Fund (EPF).

In a statement issued today, it said the new rate will take effect beginning next year and it 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.

"The new rates will be in effect for an entire year, affecting wages for the months of Jan 2021 (Feb 2021's contribution) up to Dec 2021 (Jan 2022's contribution)," it said in a statement today.

Members who wish to maintain the contribution rate at 11 per cent, it said, may fill in the Special 2021 EPF Form 17A which will be made available on the EPF website (www.kwsp.gov.my) starting Dec 1.

It also said the completed form must be submitted to their respective employers for online registration via i-Akaun (employer) from Dec 14.

"Employers are also required to keep the forms received for their records."

It added members may refer to the EPF website or contact the EPF should they require more information.

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