From April 2020, the statutory contribution rate for employee contributions will go down from 11% to 7%, says the Employees Provident Fund (EPF). The new rate which, will be in effect until December, is in line with the Government's announcement on the 2020 Economic Stimulus Package 2020.
"The new statutory contribution rate for employees will affect April 2020's wage (May 2020's contribution) up to December 2020's wage (January 2021's contribution) subject to the Third Schedule of the EPF Act 1991. The new statutory contribution rate for employees applies to those below 60 years old who are liable for contribution.
The statutory contribution rate for employees aged 60 years old and above however, remains unchanged. However, employees may choose to maintain the current contribution rate of 11% by completing Borang KWSP 17A (Khas 2020) that will be made available on the EPF website at a later date. This form must be submitted to the EPF via employers and will take effect from the following month.
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