EPF Contribution Rate Remains Unchanged Until 60 Years Of Age-12 per cent from employers; 11 per cent from employee
The Employees Provident Fund (EPF) today announced that effective from August 2013 wages, members aged up to 60 who are still employed will continue to receive full EPF contributions at 12 per cent from their employers (or 13 per cent for employees earning a monthly wage of RM5,000 and below) while employees themselves will contribute the same rate at 11 per cent.
For employees aged between 60 to 75, they will need to contribute at half of the rate which is 5.5 per cent and their employers are required to contribute at 6 per cent (or 6.5 per cent for employees earning a monthly wage of RM5,000 and below) (Refer to Table).
The move to retain the EPF contribution rate until 60 years of age is in line with the implementation of minimum retirement age which took effect on 1 July 2013. This will accumulate more savings for membersí retirement and also shorten the duration of dependency on their retirement savings.
The latest EPF contribution schedule has been uploaded onto myEPF website (www.kwsp.gov.my) for the benefit of employers who wish to verify the new amount of employee and employer EPF contributions.
While the changes in the retirement age and the contribution rates take place, the existing Age 55 Withdrawal and Age 50 Withdrawal remain unchanged. Members can opt to withdraw their savings in Account 2 at age 50 and to make full EPF withdrawal at age 55.
However, members are encouraged not to withdraw all their retirement savings in one lump sum at age 55 but to stretch their savings for a longer period via flexible options under Age 55 Withdrawal as members can choose to withdraw their savings monthly or partially.
For more information, kindly log on to myEPF website, or visit the nearest EPF branch or contact our Call Centre at 03 - 8922 6000 (from 8.00 am to 6.00 pm from Monday to Friday). Alternatively, members and employers can send their query online to http://enquiry.kwsp.gov.my.
NIK AFFENDI JAAFAR
Employees Provident Fund
Date: 5 August 2013