When an employer contributes to the EPF, the amount needs to be either in line with the EPF Contribution Schedule (THIRD SCHEDULE) or you may also opt to contribute at a set percentage of 13% or 12% respectively, depending on the amount of salary paid to the employee (below or above RM 5000). Please note that our app is set to calculate the contribution for employer and employee based on the contribution schedule!
Flexible EPF contributions for an Employer:
In case of the employer wanting to contribute a higher percentage, he would need to fill in Form KWSP 17 (MAJ) and submit to KWSP before doing so. Once this form has been submitted, the employer is obliged to contribute at the new rate going forward.
Flexible EPF contributions for an Employee:
If an employee opts to contribute at a rate exceeding his current statutory rate, you may do so but need to submit a notice of election first using Form KWSP 17A (AHL).
Please ensure that you have submitted a notice of election to KWSP before making any changes regarding the percentage of contribution within the app as you cannot make flexible contributions without pre-approval from KWSP. Should you have submitted such form already prior to using our app, you can proceed to make the necessary rate adjustments directly under the Statutory Requirements tab for each employee. You need to set the additional rate on top of the current percentage selected. So for example if the employee’s current contribution rate is 11% and you want to increase the Employee EPF Rate to 13% you would select 11% and then 2% from additional rate on the same line:
This rate will then be the new statutory rate going forward and shall remain so until the employer and/or employee submit a notice of cancellation using Form KWSP 18 (MAJ) and/or Form KWSP 18A (AHL) respectively. Once KWSP has received and processed this notification, the rate of contribution will be reverted back to the previous statutory rate.
This help article was compiled for version 0.13.0 of app.payrollpanda.my
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