[Malaysia] Statutory rate for employee’s EPF share of contribution to be reduced to 9% for 2021
As part of the Malaysia Economy Stimulus Plan to mitigate the economic impact due to the pandemic, the Malaysia government has announced on 6 November 2020 the revised Employee Provident Fund (“EPF”) statutory contribution rate.
With effect from January 2021, employees’ statutory contribution EPF rate will be reduced from 11% to 9% of their monthly salaries. The reduction is meant to increase the disposable income of EPF contributors, and help them cope with the economic uncertainty.
For employees who wish to maintain the contribution rate at 11% can do so by updating the EPF body and completing a form. The completed form must then be submitted to employers for online registration via i-Akaun (Employer), starting from 14 December 2020.