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EPF

WHAT IS EPF (KWSP)?​

  • A portion of an employee’s salary and employer’s contribution on behalf of every worker.
  • Every company is required to contribute EPF to their staff
  • Contribution has to be made to KWSP before the 15th day of every month.

What Payments Are Subjected to EPF (KWSP)?​

payments

EPF Contribution Rate​

contribution-rate-1

contribution-rate-2

Frequently Asked Questions (FAQs)​

How Does SQL Payroll manage EPF contributions?​

  • SQL Payroll automatically assigns the correct percentage of EPF contributions based on the employees’ salary and other contributing factors.
  • In SQL Payroll, you can also set your own EPF contribution rate based on your company’s policy.
Example

You can set the EPF rate at 19% for employees In the management level. The employers’ contribution is tax deductible up to 19% , which is not tax allowable expenses.

Does bonus affect Employer EPF rate?​

  • If an employee’s monthly wages is less than RM5,000 the Employer’s EPF rate will be 13%.
  • But if the employee receives a bonus that causes their wages for that particular month to exceed RM5000, the employer contribution rate will still remain at 13%.
  • Why? This is because the contribution calculation is based on total renumeration. Ed. Wages, overtime, and allowance. It DOES NOT include bonus and director fees.

My employee turns 60 years old this year, what should their EPF contribution rate be?​

  • If employee is above 60 years old, the employee’s EPF contribution rate will be 0% while the employer’s contribution will be 4%

over-60

Are employees above the age of 75 required to contribute for EPF?​

  • No. No contributions are required from both parties.