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
Direct answer
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.
Key facts
High-signal points for buyers comparing options.
Authority
KWSP / EPF
Payment Due
15th of following month
Employer Rate (≤RM5k)
13%
Employer Rate (>RM5k)
12%
Employee Rate
11% (Standard)
Retirement savings for employees
Tax relief for employees (up to RM4,000 combined with EPF)
Tax deduction for employers on contributions paid
What HavaHR brings together
Payroll, people operations, statutory calculations and HR documents in one workflow built for Malaysian SMEs.
Auto-Calculation via Third Schedule
Age-Based Rate Adjustments
Bonus EPF Calculation
Form A Generation
Online Submission (i-Akaun)
Compare the important differences quickly
| Category | Employee Share | Employer Share |
|---|---|---|
| Malaysian (< 60 years) | 11% | 12% / 13% |
| Malaysian (60+ years) | 0% | 4% |
| Permanent Resident | 11% | 12% / 13% |
| Foreigner (Voluntary) | 11% | RM 5.00 |
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HR Automation for Malaysian SMEs