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EPF
stands for Employees Provident Fund. It is also commonly known as Kumpulan Wang Simpanan Pekerja (KWSP) in Malaysia. EPF is a social security
institution that is formed according to the Laws of Malaysia, Employees
Provident Fund Act 1991 (Act 452).
It
aims to provide retirement benefits for members through efficient and reliable
management of their savings. EPF is intended to help employees from the private
sector save a fraction of their salary in a lifetime banking scheme, to be used
primarily as a retirement fund but also in the event that the employee is
temporarily or no longer fit to work. EPF also offers a convenient framework
for employers to meet their statutory and moral obligations to their employees.
EPF
contribution constitutes the amount of money credited to members’ individual
accounts in EPF. The EPF contribution amount for each employee is calculated
based on his monthly wages. The current contribution rate is in accordance with
the wage received.
For
monthly salary of RM 5,000 and below, the current employee’s contribution is
11% of their monthly salary while the employer’s contribution is 13%. For
employees who receive monthly salary exceeding RM 5,000, the employee’s contribution of 11%
remains, while the employer’s contribution is 12%.
It
is compulsory for employers to contribute within the stipulated period, which
is on or before the 15th of the month following the wage month. Interest and
dividend will be imposed for late payment of contribution.
The
employer has the responsibility to pay to the EPF both his and the employee's
shares first. Then, the employer may recover the employee's share of the
contribution by deducting it from the employee's wage when the wage is paid to
the employee.
Contact Us
If
you have further queries, please contact Tannet
24
hours Malaysia hotline：603-21418908;
24
hours Hong Kong hotline：852-27837818;
24
hours China hotline：86-755- 36990589;
Email:
mytannet@gmail.com
TANNET
GROUP: http://www.tannet-group.net , http://en.tannet.com.my