EPF is governed by Employee Provident Fund (Amendment) Act 2007 referred as EPFA
An Employer must register an employee and contribute to EPF even if he has only one Employee. It is illegal for an employer and his employee to agree between them in the contract of employment not to contribute to EPF.
If employer fails to pay EPF contributions within the specified periods, the employer must pay in addition to the outstanding EPF contributions the dividend which would have been accrued on such outstanding base on EPF last declared date.
EPF Rate of contribution (New 2016)
- Malaysian Citizen up to age 60 > RM 5000 Salary: Employee 11% Employer 12% Total 23%
- Malaysian Citizen Over age 60 < RM 5000 Salary: Employee 11% Employer 13% Total 24%
- Malaysian Citizen Over age 60: Employee 5.5% Employer 6% Total 11.5%
- Foreign Worker up to age 60: Employee 11% Employer RM 5 Total 11% + RM 5
- Foreign Workers Over age 60: Employee 5.5% Employer RM 5 Total 5.5% + RM 5
Employer are required to furnish each employee a statement of wages containing the following particulars.
- Full Name of the Employee
- EPF membership number
- Employee’s Sex
- Identify card number (Passport number and citizenship if foreigner)
- Duration of wage period (that is, monthly, daily, etc)
- Wages for the period
- Other remuneration for the period
- Amount deducted for EPF from employee’s wages
- Employer’s registration number
- Amount of employer’s share of EPF contribution
- Full name of the employee/employer representative, signature and date of issue of statement
EPF contributions need not be paid on directors’ fees because they are only passed or approved by the shareholders at the general meeting of the company. RPF contribution must be paid on a director’s salary if the director is a salaried director.
If a director is appointed for a fixed period of time and is paid a salary and also director’s fee then EPF contributions must be paid on the salary and the director’s fee.
The following are not considered as “employees” for the purpose of EPFA
- Normadic aborigines
- Domestic Servants (not liable to pay unless the servant has given one month’s notice to the EPF board and to his/her employer intention to contribute towards EPF.
- Out workers as defined in Section 3 of the Workmen’s Compensation Act 1952
- Person detained in any prison, place of detention, mental hospital, rehabilitation centre or leper settlement
- Any person who has attained the age of 75 years
Note: Monthly EPF contributions payments must reach the EPF office on or before the 15th if the following month
eg: Deductions made from the wages for December 2015, the deducted contribution plus the employer’s share must reach the EPF office on or before 15.01.2016
Note: If an employees dies, no contribution us due from the employee for the month during which such death occirs. But if contribution has been received, it must be paid over to the EPF.
Partners and firms and sole proprietors are not required to contribute to EPF but they can elect to contribute.
An employer and an employee or either of them may at any time elect to pay monthly contributions at a rate which exceeds the rate set out. However this is subject to any maximum limit of monthly contributions set out in the Third Schedule to the EPFA.
An employer is defined as a person(s) with whom an employee has a contract of service or apprenticeship.
- Manager, agent or person responsible for the payment of wages to an ’employee’
- Any group of persons whether statutory or non-statutory or incorporated
- Any Government, Government Department, Statutory Body, Local Authority or other bodies as specified in the Second Schedule to the EPF Act 1991
An employee is defined as a person who is employed under a contract of service or apprenticeship. The contract of service or apprenticeship can be written or oral, expressed or implied.
All remuneration in money due to an employee under his contract of service or apprenticeship whether it was agreed to be paid monthly, weekly, daily or otherwise.
Among the payments that are liable for EPF contribution:
- Payment for unutilised annual or medical leave
- Arrears of wages
- Wages for maternity leave
- Wages for study leave
- Wages for half day leave
- Other payments under services contract or otherwise
Among the payments not liable for EPF contribution:
- Service charges (a service fee, a tip or otherwise has been paid by, charged on, collected from or voluntarily given by a customer or any other person not being the employer in relation to the employer’s business and which is payable to an employee)
- Overtime payment (includes payment for work done on public holidays and rest days)
- Retirement benefits
- Retrenchment, temporary and lay-off termination benefits
- Any travelling allowance or the value of any travelling concession
- Payment in lieu of notice of termination of employment
- Director’s fee
Transfer of retirement benefits
An employer may, with the approval of an employee, transfer to the employee’s EPF account any funds being the retirement benefits of the employee or any funds from any other retirement scheme or plan relating to the employee. Such a transfer can be made through Form EPF 16F.
EPF: Employee Request Additional Contribution
If Employee wants to contribure say additional 2%, the calculation of the 2% is as below example.
calculation on additional 2% must be base on original wage
|Sekiranya majikan dan pekerja ingin membayar caruman sebanyak 2% melebihi kadar yang ditetapkan, pengiraan adalah seperti berikut: Jumlah Upah||Bahagian Caruman||Jumlah caruman yang perlu dibayar|
|Caruman wajib (mengikut kadar yang ditetapkan dalam Jadual Ketiga, Akta KWSP 1991)||RM1,000.00||RM110.00|
|Pilihan mencarum melebihi kadar berkanun (pengiraan : kadar yang ditetapkan dalam Jadual Ketiga dan pengiraan sendiri tidak dibenarkan)||RM1,000.00||RM110.00|
(2% daripada RM1,000.00) = RM 130.00
(2% daripada RM1,000.00) = RM 140.00
EPF List of Employer Form
|No.||Form Codes||Descriptions / Form Names|
|1.||KWSP 1 (MAJ)||Employer Registration Application Form|
Types of Employer Registration:
– Registered with the Companies Commission of Malaysia.
– Registered with other than the Companies Commission of Malaysia.
– Employer to local servants.
|2.||KWSP 1 (i)||Registration And Updating Of i-Akaun Details For Existing Employer|
|3.||KWSP 3||EPF Member’s Registration Application Form & Particulars Update:|
1) New Member registration
2) Member’s information update
|4.||KWSP 3A||Member’s Accounts Consolidation Application.|
|5.||KWSP 4 & KWSP 4A||Nomination & Revocation of Nomination.|
|6.||KWSP 6 (Borang A)||Schedule of Monthly Contributions.|
|7.||KWSP 6A (1)||Self Contribution Payment form.|
Types of Self Contributions:
2) Pensionable Workers
|8.||KWSP 6 (Borang B)||Notice of Cessation of Liability as an Employer.|
|9.||KWSP 7 (Borang E)||Schedule of Arrears of Contributions.|
|10.||KWSP 8 (Borang F)||Arrears Remittance Statement.|
|11.||KWSP 16||Notice of Election to Employer (Domestic Servant).|
|12.||KWSP 16B||Notice of Election to EPF by a Non-Domicile (Domestic Servant).|
|13.||KWSP 16F||Retirement Benefits Transfer.|
|14.||KWSP 17 (Maj)||Notice to Contribute More Than Statutory Rate – Employer.|
|15.||KWSP 17A (AHL)||Notice to Contribute More Than Statutory Rate – Employee.|
|16.||Notice to Contribute More Than Statutory Rate (Employee’s Share)|
|17.||KWSP 17AA (AHL)||Notice Of Option To Contribute More Than Statutory Rate (Employee’s Share)|
|18.||KWSP 18 (Maj)||Notice to Cancel Option to Contribute More Than Statutory Rate – Employer.|
|19.||KWSP 18A (AHL)||Notice to Cancel Option to Contribute More Than Statutory Rate – Employee.|
|20.||KWSP 19||Certificate of Registration of Employer.|
|21.||KWSP 14||Application for Refund of Contributions Made In Error.|
|22.||KWSP 15||Schedule of Contributions Transferred from Approved Funds.|
|23.||KWSP 1360||Notice to Employer for Payment of Additional Contributions.|
|24.||KWSP 1743||Notice to Employer for Short Payment of Contributions.|
|25.||KWSP 1314||Schedule of Unposted Contributions.|
|26.||Change of Name/Address of Employer|
EPF: FORM A / Borang A
Types of Form A /Borang A
Terdapat dua jenis Borang KWSP 6 (Borang A) yang boleh digunakan oleh majikan untuk tujuan pembayaran.
i) Electronic Form A
Types of Electronic Form A as below:
1) Form A in i-Akaun Employer.
2) EPF Diskette Format prepared by the company HR System
3) Internet Banking.
The usage of Electronic Form A can speed up the credit of contribution to members account in a more accurate way.
Note: Companies using Electronic Form A must get approval from EPF
ii) Pre-printed Form A
Pre-printed Form A must be send my postage every month and must be use by companies contributing on the monthly schedule.
Employer must make sure all information in Form A like EPF registration number, name, address of employer is correct and accurate.
Employer are encourage to type new employee name or names not printed in KWSP 6 (Form A). If employee has resigned that has been printed in Form A, employer is to strike out that name and relevant information.
Photocopy of Form A and custom design format from Employer is not allowed