Monday, January 17, 2011

Reminder: EPF workers' contribution back to 11% from January 2011

The Employees Provident Fund (EPF) has reminded employers that the monthly statutory contribution rate for the employees has reverted to 11% from 8% and this comes into effect from the January 2011 salary.

The EPF said employers had to ensure the correct amount was deducted from the employees’ wages based on this revised contribution rate and remitted to the EPF starting from the February 2011 contributions.

The employees’ statutory rate was lowered from 11% to 8% for two years from January 2009 to December 2010.

"Members who had previously submitted Form KWSP 17A (AHL) Khas/KWSP 17AA Khas to maintain the contribution rate at 11% during the two-year period, would not be required to take any action," it said.

It added the employers’ share of the monthly contribution to the EPF was unchanged at 12%.

I suggest that everyone that's working out there make sure you check your payslip come end of Jan to make sure that the deduction is now back at 11%. For those that have choosen to remains at 11% previously, do double check to confirm as well.

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