An employee and employer can choose to contribute EPF at a higher rate than the minimum rates specified in the EPF Contribution Table. However they must get approval from KWSP before increasing their contributions. Please refer to the following guide by KWSP here.
How to apply to KWSP for increased EPF contributions
- Increased 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 it to KWSP before doing so. Once this form has been submitted, the employer is obliged to contribute at the new rate going forward.
- Increased EPF contributions for an Employee:
If an employee opts to contribute at a rate exceeding his current statutory rate, they may do so but need to submit a notice of election first using Form KWSP 17A (AHL).
How to increase the contribution rate in PayrollPanda
Go to Employees>Select Employee>Statutory Requirements and set the Additional Rate for employee and/or employer.
So for example if the employee’s current contribution rate is 11% and you want to increase it to 13% you should select 2% as Additional Rate on the Employee EPF Rate line.
How to revert back to the statutory contribution rates
To revert back to the minimum statutory rates, the employer and/or employee must 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
Read more about:
EPF payment here