Do you know that Employee EPF contribution rate was changed 10 times since EPF was established in 1952? During the same period, Employer EPF contribution rate changed 3 times. The rate was calculated base on gross salary of the employee.
The changed was done due to various reason. For example in 2009, employee contribution rate reduced to 9 from 11 percent. The aim was to stimulate Malaysian economy due to recession by encouraging public to spend more. However, public can opt not to change it.
The table below is the historical Employees & Employers EPF Contribution Rate since 1952.
| Year | Employee | Employer | Total | |
|---|---|---|---|---|
| from | to | (%) | (%) | (%) |
| 1952 | Jun 1975 | 5 | 5 | 10 |
| Jul 1975 | Nov 1980 | 6 | 7 | 13 |
| Dec 1980 | Dec 1992 | 9 | 11 | 20 |
| Jan 1993 | Dec 1995 | 10 | 12 | 22 |
| Jan 1996 | Mac 2001 | 11 | 12 | 23 |
| Apr 2001 | Mar 2002 | 9 | 12 | 21 |
| Apr 2002 | May 2003 | 11 | 12 | 23 |
| Jun 2003 | May 2004 | 9 | 12 | 21 |
| Jun 2004 | Dec 2008 | 11 | 12 | 23 |
| Jan 2009 | Dec 2010 | 8 | 12 | 20 |
| Jan 2011 | Dec 2011 | 11 | 12 | 23 |
| Jan 2012* | – | 11 | 12 | 23 |
| 13 | 24 | |||
* employer contribution rate is 12% for worker who earn more than RM5,000 per month or 13% otherwise.
At least contribution from employer remains the same at 12% since 1993. :):)