At the same time, the employees' share of minimum contribution rate has been reduced to 0%, down from the previous 5.5%. This was announced by the EPF, also known as KWSP – Kumpulan Wang Simpanan Pekerja) on 7 January 2019 (Monday).
The new rates will commence with Malaysian workers' January 2019 pay, in time for the February 2019 contribution.
According to the EPF, this move to reduce statutory contribution rates follows the Government's proposal to help increase the take-home pay of employees who continue working after age 60, as proposed during the tabling of Budget 2019 on 2 November 2018.
Further, it would also encourage employers to hire workers above 60, thus ensuring this age group remains productive and active in the Malaysian economy.
Earlier in December 2018, the EPF also confirmed in December 2018 that the minimum contribution of employees and employers will be aligned with the Minimum Wages Order (Amendment) 2018, effective 1 January 2019. In a statement to Human Resources, the EPF said with this new measure, the expected monthly contribution to be received by the EPF for every worker who earns monthly wages will be no less than RM264, subject to the worker being employed for the full month.
Aside from this, it was also announced in November 2018 that the quantum for basic savings members should have upon reaching age 55 will be revised from the current RM228,000 to RM240,000, effective 1 January 2019 as well.
For more information, contact the EPF Contact Management Centre at 03-89226000, visit the EPF website, or visit any of the 67 EPF branches nationwide.