EPF employer contribution rate 13% effective 1 January 2012

Employers' Guide to EPF Services - EPF (KWSP) 1 January 2012

Kindly take note that the employer’s share contribution for employees who receive monthly wage/salary of RM5,000 and below will be increased by 1% from 12% to 13%. The employee’s share contribution rate remains at 11%.

The increase in the employer’s share contribution rate is effective beginning employee’s January 2012 wage/salary for February 2012 contribution.

The latest contribution rate for employees and employers can be referred in the Third Schedule, EPF Act 1991  (click to download). Employers are to remit the employee’s contribution share based on this schedule.

(Source: PERKESO website http://www.kwsp.gov.my/index.php?ac=439&ch=p2employers&pg=en_p2employers_empguide&lang=en)

SOCSO CONTRIBUTION

SOCSO CONTRIBUTION/ PERKESO CONTRIBUTION


Definition Of Wages

All renumeration payable in money to an employee is taken into account as wages for the purposes of SOCSO contributions. These include the following payments:

• Salary
• Overtime payments
• Commission
• Payments for leave such as annual, sick and maternity leave, rest day, public holidays
• Allowances such as incentive, good behavior, cost of living (COLA)
• Service Charge

Example:

Salary = RM1000.00
Overtime Payments = RM 250.00
COLA = RM 100.00
Total Salary = RM1350.00

Contribution to be paid to SOCSO is RM30.40 (Refer the Attachment A-Contribution Table) However, the following payments are not considered as wages:

• Payments by employer to any pension or provident fund for employees
• Mileage claims
• Gratuity payment(s) for dismissal or retrenchments
• Annual bonus

(Note - The payments listed above are a few examples and are not comprehensive.If an employer needs further clarification pertaining to the definition of 'wages', please contact the nearest SOCSO office).

(Source: PERKESO website

http://www.perkeso.gov.my/en/contribution.html )

EPF CONTRIBUTION

EPF CONTRIBUTION/ KWSP CONTRIBUTION


Wages
All remuneration in money due to an employee under his contract of service or apprenticeship whether it was agreed to be paid monthly, weekly, daily or otherwise is regarded as wages. This includes bonus, commission or any allowance which an employer is required to pay whether such a payment is payable under his contract of service or apprenticeship or others.

Payments Liable For EPF Contribution
Generally, all remuneration due to an employee is wages and shall be subject to the EPF contributions. Examples of such payments include:

• Salary
• Payment for unutilised leave;
• Bonuses;
• Allowances;
• Commission;
• Arrears of wages;
• Wages for maternity leave;
• Wages for study leave;
• Wages for half pay leave; and
• Directors' salary (as an employee).

Note: The above list is not exhaustive. If you have any doubts, please contact our Call Management Centre at 03-89226000, Enquiry or any EPF Office.

Payments Not Liable For EPF Contribution

List of Payments which do not form part of the definition of “Wages” and shall not subject to the EPF contributions include:

• Service charges;
• Overtime payment;
• Gratuity;
• Directors' fee;
• Retirement benefits;
• Payment in lieu of notice of termination of employment;
• Retrenchment, temporary and lay-off termination benefits; and
• Any travelling allowance or the value of any travelling concession.

(Source: KWSP website
http://www.kwsp.gov.my/index.php?ch=p2employers&pg=en_p2employers_empguide&ac=296 )