How To Remove Employee From Epf Contribution Malaysia

Employees below the age of 60 who wishes to maintain the contribution rate at 11 or other rates of contributions higher than the statutory rate of 8 or if employees aged 60 and above wishes to maintain the contribution at 5 5 or other rates of contributions higher than the employee s statutory rate of contribution of 4 they may choose to do so by filling up form kwsp 17a khas2016.

How to remove employee from epf contribution malaysia. The 7 contribution rate will take effect from 1st april 2020 until the end of 2020 and it will be applicable to all epf members under 60 years of age that are subject to statutory contribution. If you fail to do so you are liable to prosecution and if convicted liable to a fine of not less than rm200 and not more than rm2 000 or to imprisonment for a term not exceeding six months or to both. The employer must pay their employee s contributions on or before the 15th of the following wage month. The employer is responsible to contribute the employee s share by deducting the employee s salaries and the employer s share.

Or the employee was eligible for pcb but no deductions were made. Governed under the employee provident fund act 1991 epf is a retirement saving scheme for employees who are liable to contribute epf in malaysia in which the savings contributed will be managed and invested under simpanan konvensional or simpanan shariah. The contribution amount of employer and employee shares shall be based on the contribution rate third schedule of the epf act 1991. For members aged 60 years and above the employees share of contribution rate will remain at 0.

The employee is about to leave malaysia permanently in this case form cp21 would be submitted instead of form cp22a. The saving is comprised of the employee s and employer s monthly contributions and yearly dividends earned. The employees provident fund epf or commonly known as kumpulan wang simpanan pekerja kwsp is a social security institution formed according to the laws of malaysia employees provident fund act 1991 act 452 which manages the compulsory savings plan and retirement planning for private sector workers in malaysia. Employees provident fund malaysia epf is a federal statutory body under the purview of the ministry of finance employees provident fund epf will allow education withdrawals for professional certificate programmes under budget 2020 every company is required to contribute epf calculator for its staff workers and to remit the contribution sum to kwsp before the 15th day of the following.

The employer must initially pay to the epf both his and the employee s shares. Hi there i am entering the employee details and want to remove the employee epf contributions seems like there is no option for no contribution it show the 4 is the lowest rate.