New EPF contribution rates (August 2013)
It’s important to stay up-to-date with current Employee Provident Fund contribution rates
In line with the implementation of the minimum retirement age in Malaysia from 55 to 60 on July 2013, Employee Provident Fund (EPF) has announced that starting from August 2013, employed individuals up to 60 years old will continue to contribute 11% of their wages to their EPF accounts, while their employers are obligated to contribute 12% (for those earning above RM5,000) or 13% (for those earning RM5,000 and below).
Previously, the above rates apply only to employed individuals up to the age of 55.
Meantime, the rates of contribution for employed individuals between 60 and 75 will be set at 5.5% for the employees; and 6% (for those earning above RM5,000) or 6.5% (for those earning RM5,000 and below) for the employers.
The latest contribution rates of EPF from employee and employer, according to category, are as follows:
|
Employee |
Employer |
|
|
Up to Age 60 |
||
|
Earning RM5,000 or less |
11% |
13% |
|
Earning above RM5,000 |
11% |
12% |
|
Aged 60 – 75 |
||
|
Earning RM5,000 or less |
5.5% |
6.5% |
|
Earning above RM5,000 |
5.5% |
6% |
And this is a table indicates EPF withdrawal policies:
|
Account 1 (70% of EPF savings) |
Account 2 (30% of EPF savings) |
|
|
Age 50 |
Withdrawal not allowed |
Withdrawal allowed |
|
Age 55 |
Withdrawal allowed |
Withdrawal allowed |