Periodically, countries will change the rate or calculation for social security or pension contributions.  If you have employees in Malaysia, you will want to be aware of upcoming reductions in contributions to the Employee Provident Fund.

What is the Employee Provident Fund (EPF)?

The EPF is a retirement fund for employees in Malaysia, that requires both employee and employer contributions based on a percentage of monthly salary.

What are the EPF changes for January 2021?

There are several changes affecting both Malaysian employees and employers.  The new rates are:

Employees below 60 years of age:

• Employee Share: 9% (this is a reduction from 11% previously)
• Employer Share: 13% (12% for monthly salary over RM5000)

Employees above 60 years of age:

Malaysians:

• Employee Share: 0%
• Employer Share: 4%

Permanent Residents/Non-Malaysian:

• Employee Share: 5.5%
• Employer Share: 6.5% (6% for monthly salary over RM5000)...read more

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