EPF Update (w.e.f August 2013)

Dear all,

By now, you should be aware of the latest changes to the EPF as announced in early August. I’ve never intended to blog on this because I am no expert when it comes to matters under the EPF. However, due to countless queries, I’m drafting this simple post for the benefit of all my readers. In brief, the government has made a rule for employers to continue contributing the full rates for an employee until the age of 60 years (as opposed to the previous 55 yearS). This change is to place EPF in line with the introduction of the Minimum Retirement Age Act 2012. As of to date, EPF contributions will be as follows:

 

Employee up to 60 years:

Earning less than RM5k per month: 13% (employer’s contribution)

Earning more than RM5k per month: 12% (employer’s contribution)

Employees contribution will remain at 11%

 

Employee from 61 years – 75 years

Earning less than RM5k per month: 6.5% (employer’s contribution)

Earning more than RM5k per month: 6% (employer’s contribution)

Employees contribution will remain at 5.5%

 

Employees above 75 years – No contribution required

 

Further information can be obtained from this link:

http://goo.gl/obM44t