As highlighted during 2012 budgets, employers’ statutory contribution rate for Employees Provident Fund (EPF) will be increased from 12% to 13%. However, the increase is only applicable to the workers who earning less than RM5,000 a month. The employees’ contribution rate remains at 11%.
For employees of 55 years old and above (up to 75 years old), the new employer’s share contribution rate is 6.5% from 6.0% previously. The employees continue to contribute at 5.5 per cent.
Kindly refer to “Employees & Employers EPF Contribution Rate since 1952” for historical employees & employers rate.
The new revised rate is effective from January 2012. It means that it starts from wage/salary received by an employee for January 2012 and EPF contribution for February 2012.
This is an initiative by the Government to increase employees’ retirement savings for those who receive monthly wage of RM5,000 and below to enable them to have sufficient savings upon retirement.
The new rate will benefit about 5.3 million working Malaysians.
Good! I am earning less then RM5000.oo a month! ^^
Yeah good move… happy new year to all
@kingjoke: not much la 1%.. How to get rich with extra 1%? lolx…