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    The Malaysian Employers Federation issued a circular informing members about the reduction of the Employees Provident Fund (EPF) statutory contribution rate for employees under 60 years old from 11% to 7% between April 1st and December 31st 2020 as part of the government's economic stimulus package in response to COVID-19. Employers are advised to ensure correct deduction amounts based on the Third Schedule of the EPF Act 1991. Employees have the option to maintain the 11% rate by submitting Form KWSP 17A to their employer.

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    Covid-19

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    CirAG2020_05.002

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    The Malaysian Employers Federation issued a circular informing members about the reduction of the Employees Provident Fund (EPF) statutory contribution rate for employees under 60 years old from 11% to 7% between April 1st and December 31st 2020 as part of the government's economic stimulus package in response to COVID-19. Employers are advised to ensure correct deduction amounts based on the Third Schedule of the EPF Act 1991. Employees have the option to maintain the 11% rate by submitting Form KWSP 17A to their employer.

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    29 views2 pages

    CirAG2020 05.002

    Uploaded by

    ZaimZharfan92
    The Malaysian Employers Federation issued a circular informing members about the reduction of the Employees Provident Fund (EPF) statutory contribution rate for employees under 60 years old from 11% to 7% between April 1st and December 31st 2020 as part of the government's economic stimulus package in response to COVID-19. Employers are advised to ensure correct deduction amounts based on the Third Schedule of the EPF Act 1991. Employees have the option to maintain the 11% rate by submitting Form KWSP 17A to their employer.

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    © All Rights Reserved
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    of 2

    @MsiaEmployers

    MALAYSIAN EMPLOYERS FEDERATION


    HEAD OFFICE: 3A06 – 3A07, Block A, Pusat Dagangan Phileo Damansara II, No. 15, Jalan 16/11, Seksyen 16, 46350 Petaling Jaya, Selangor, Malaysia
    www.mef.org.my Tel: 603-7955 7778 Fax: 603-7955 6808/7955 9008 E-mail: [email protected]

    Circular No: AG 05/2020

    28 February 2020

    To: ALL MEMBERS

    Reduction of Employees Provident Fund (EPF) Statutory


    Contribution Rate for Employees with Effect from
    1st April 2020 to 31st December 2020

    As part of the Government’s economic stimulus package intended to


    cushion the impact of the COVID-19 outbreak on the Malaysian economy,
    the Prime Minister (Interim) YAB Tun Dr. Mahathir Mohamad on
    27th February 2020 announced that the Employees Provident Fund (EPF)
    statutory contribution rate for employees below 60 years will be reduced
    from eleven per cent (11%) to seven per cent (7%) with effect from 1st April
    2020 (May 2020 EPF contribution) until 31st December 2020.

    2. The new rate of EPF statutory contribution is applicable to


    employees below the age of 60 years. For employees aged 60 and above,
    the employees’ share of the statutory rate of contribution will remain at
    zero per cent (0%).

    3. Members are advised to ensure that the correct amount of


    contribution is deducted from their employees’ wages based on the Third
    Schedule of the Employees provident Fund Act 1991. Friday as the weekly
    rest day shall observe the working day immediately following 22nd May
    2020 as a public holiday in substitution.
    4. Please be advised also that employees may choose to maintain the
    current contribution rate of 11 per cent by completing the Form KWSP 17A
    (Khas) - Notis Pilihan Mencarum Melebihi Kadar Berkanun, which is
    available on EPF web-site www.epf.gov.my.

    5. The completed Form KWSP 17A (Khas) must be submitted by the


    employees concerned to the employers for submission to the EPF.

    6. Attached herewith the EPF’s Media Statement dated 27th February


    2020 for your reference.

    Thank you.

    Datuk Hj Shamsuddin Bardan


    Executive Director

    Page | 2

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