Sunday, January 22, 2012

Higher EPF contributions from Jan 2012

From January 2012, the Employers contribution for employees earning RM5,000.00 or less has been increased from 12% to 13%.

Employees contributions remain at 11%, no change to the existing rate.

Total monthly contribution to EPF would now be 24%, made up of 12% Employer contribution and 11% Employee contribution.

For employees aged 55 and above, the Employer rate has been increased by 0.5% from the existing 6.0% to 6.5%.  Employees contribution remains at 5.5%, making a total of 12%.

Prime Minister and Finance Minister Datuk Seri Najib Tun Razak announced the increase during his 2012 Budget Speech.  The increase seeks to address the problem of retirees having insufficient funds to see them through their retirement age.

The latest EPF contribution schedule (Third Schedule, EPF Act 1991)  can be downloaded from KWSP's website.  Click here to download.