Payments Subject to EPF Contribution
In general, all monetary payments that are meant to be wages are subject to EPF contribution.
Payments for unutilised annual or medical leave
Allowances (except a few, see below)
Arrears of wages
Wages for maternity leave
Wages for study leave
Wages for half day leave
Other contractual payments or otherwise
Payments Exempted From EPF Contribution
The payments below are not considered “wages” by the EPF and are not subject to EPF deduction.
Service charges (tips, etc)
Gratuity (payment to employee payable at the end of a service period or upon voluntary resignation)
Payment in lieu of notice of termination of service (payment given when employee’s service is terminated)
Gifts (includes Cash Payments for holidays like Hari Raya, Christmas etc.)
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