Employee Contributes 11% To EPF Again
If you’ve opted to reduce your employee contribution to the Employees Provident Fund (EPF) to 8% back in March 2016, your contribution will effectively revert to 11% for January 2018.
The reduced rate has ended as of December 2017 salary cycle, which is the January 2017 contribution, said EPF in a statement.
After the announcement of the reduction by Prime Minister Datuk Seri Najib Razak during the Budget 2016 recalibration, 50% of members opted to reduce their contribution rate to 8%.
The statutory contribution rate for employees’ share will revert to the original 11% for members below age 60, and 5.5% for those aged 60 and above.
Employers are required to ensure the right amount of contributions are deducted from their employees’ salary and remitted to the EPF according to the new contribution rates. The latest contribution rates for employees and employers can be referred at the Third Schedule, EPF Act 1991.
For members who wish to contribute more than the statutory rate of 11% or 5.5% may do so by completing Form KWSP 17A (AHL) or Form KWSP 17AA (AHL).