What is Contribution?
A contribution is the amount of money paid to the EPF which is calculated based on the monthly wages of an employee, and then credited into the employee’s EPF account. The EPF contributions for each employee are made up of the employee’s and employer’s portions.
The employee’s share is deducted from the employee’s wages and contributed to the EPF. The employer’s share is the amount of money contributed by the employer to match the employee’s share of contribution for the employee’s retirement benefit.
EPF contributions can be paid in cash, by postal order, bank draft or any other means approved by the Board. They must be paid to the nearest ringgit at the rate specified in the .
Contribution Rates
The rate of contribution is a percentage of the employee’s monthly wages that must be paid as EPF contribution. Each employee is required to contribute 11 percent of his/his monthly income, and this is added by the employer’s contribution of 12 percent. The rates of employee’s and employer’s share of contribution are subject to changes set by the Government. In order to facilitate the payment of contributions, the amounts payable are provided in the .
Both the employee and employer, or either of them, may also opt to contribute at rates higher that what is required
