Malaysia slashes minimum EPF employee contribution rate to 7%

The Malaysian government has reduced the minimum employee contribution rate for the Employees’ Provident Fund (EPF) to 7% starting from April 1 in a bid to cushion the impact of the COVID-19.

Currently, employees contribute 11% of their salary to EPF, while employers must put in a minimum of 12% for salaries more than RM5,000 and 13% for salaries lower than that.

Contribution rate for employees above the age of 60 remains unchanged at 0% while the minimum employers’ share of EPF statutory contribution rate is 4%.

Employees have the option to remain at their current contribution of 11% by submitting a special form available on the EPF website.

The COVID-19 outbreak has infected 81,000 people in over 47 countries, with Malaysia recording 23 cases so far.

And with the outbreak impacting Malaysia’s businesses, the government hopes the latest measure will help stabilise the economy during this period.