Last updated: February 2026
EPF Contribution Malaysia: Rates, Rules & Compliance (2025-2026)
Everything Employers Need to Know About KWSP Contributions
Third Schedule-based calculations
Avoid late payment dividends and penalties
Why Malaysian SMEs Choose HavaHR Payroll
Retirement savings for employees
Tax relief for employees (up to RM4,000 combined with EPF)
Tax deduction for employers on contributions paid
Learn More About EPF (KWSP)
EPF (Employees Provident Fund) or KWSP is a mandatory savings scheme. Contributions are required for all Malaysian employees. Standard rates for employees under 60 are 11% (employee share) and 12-13% (employer share, depending on salary). Calculations must follow the Third Schedule of the EPF Act 1991, not just a flat percentage.
Detailed breakdown of EPF contribution rates for different age groups and salary tiers. Understand what payments are subject to EPF and how to calculate it correctly using the Third Schedule.
Official Resources
- KWSP Official Portal
Official EPF contribution and regulatory updates
- JTKSM
Malaysian employment standards reference
Frequently Asked Questions
What is the current EPF contribution rate?
For employees under age 60: Employee share is 11% (or optionally 9%). Employer share is 13% for wages ≤ RM5,000, and 12% for wages > RM5,000.
How is EPF calculated?
EPF must be calculated based on the Third Schedule of the EPF Act 1991. It uses wage tiers rather than a flat percentage calculation, which ensures precise contribution amounts.
Is overtime subject to EPF?
No, overtime payments are generally NOT subject to EPF contributions. However, bonuses, commissions, and allowances are subject to EPF.
When is the EPF payment deadline?
EPF contributions must be paid by the 15th of the following month (e.g., January salary contributions are due by February 15th).