With reference to the Government’s announcement on the Budget 2021, the Employee Provident Fund (EPF) has clarified that employee EPF contribution rate will be reduced from 11% to 9% effective 1st January 2021.
The new rate of 9% is applicable from January 2021’s wage (February 2021’s contribution) until December 2021’s wage (January’s 2022 contribution)
The statutory rate for the employee aged 60 years old and above remains unchanged.
Members may choose to maintain the employee contribution rate at 11% by completing Form KWSP 17A (Khas 2021). This form must be submitted to the EPF board via employer i-Akaun which will be made available on 14th December 2020 .
For the official announcement, please visit here.
For FAQ, kindly visit here.
For any further information, please feel free to contact us if you have any question.