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Reduction of Employee Contribution Rate

By March 12, 2020 July 7th, 2020 No Comments

The Government announced its 2020 Economic Stimulus Package on 27 February 2020 and one of the key measures highlighted is the reduction of employees’ EPF statutory contribution of 11% to 7%.

The new statutory contribution rate for employees will affect April 2020’s wage (May 2020’s contribution) up to December 2020’s wage (January 2021’s contribution) subject to the Third Schedule of the EPF Act 1991.

However, employees may opt to retain their contribution rates at 11% by filling out ‘Notis Pelican Men arum Malabari Kadar Breann (KSWP 17A (Khas 2020) ) and present it to the employers for submission.  The form can be obtained from

This reduction shall only be applicable to employees below the age of 60 years.  For employees aged 60 and above there shall remain nil contributing.