EPF: Reduced contribution rate affects members below 60

The government's decision to reduce the minimum statutory Employees Provident Fund (EPF) contribution rate for employees by four percentage points affects only members below the age of 60.

In a statement today, EPF said for those aged 60 and above, the employees’ share of the contribution rate will remain at zero percent.

"Employees may choose to maintain the current contribution rate of 11 per cent by completing the "Notis Pilihan Mencarum Melebihi Kadar Berkanun KWSP 17A (Khas)" which is available on epf.gov.my.

"This notice must be presented to employers to be submitted to the EPF," the statement said.

The cut in contribution from 11 percent to seven percent is part of the government's economic stimulus package intended to cushion the blow from the economic fallout following the global Covid-19 outbreak. 

The new rate will be effective starting April 1 until the end of the year.

The stimulus package was unveiled by interim prime minister Dr Mahathir Mohamad in Putrajaya today. — Bernama