What is the EPF contribution rate in Malaysia 2025?

EPF contribution rates 2025: Employees contribute 11% of wages (or optional 9% for salary >RM5,000). Employers contribute 13% for wages ≤RM5,000 or 12% for wages >RM5,000. Rates are calculated on total wages including allowances.

What is the EPF employee contribution rate?

Standard employee EPF rate is 11% of monthly wages. Employees earning more than RM5,000 can opt for reduced 9% rate by submitting Form KWSP 17A (Khas 2021). This election is valid until revoked.

What is the EPF employer contribution rate?

Employer EPF contribution: 13% for employees earning RM5,000 or below per month, 12% for employees earning above RM5,000 per month. Employer contribution is additional to employee salary, not deducted from wages.

What is the EPF rate for employees above 60?

For employees aged 60 and above: Employee contribution is 0% (voluntary up to 5.5%). Employer contribution is reduced to 4% regardless of salary level. Employee may opt for higher voluntary contribution.

What wages are subject to EPF contribution?

EPF is calculated on all wages: basic salary, fixed allowances (housing, transport, meal), overtime pay, commissions, bonuses, and incentives. Directors' fees and benefits-in-kind have specific treatment.

Is there a maximum EPF contribution limit?

No maximum wage ceiling for EPF contributions - the percentage applies to total wages. However, for tax relief purposes, employee EPF is capped at RM4,000 per year. There's no cap on employer contribution.

What is the EPF Third Schedule?

EPF Third Schedule (Jadual Ketiga) is the official contribution table used to determine exact EPF amounts based on wage bands. It ensures consistent calculations across all employers. Payroll software uses this for accuracy.

How do I calculate EPF for partial month?

For partial month (new joiner/leaver): Calculate based on actual wages paid in that month. Use Third Schedule to find contribution amount for the wage paid. No pro-rata calculation on percentage - use table lookup.

When must EPF be paid to KWSP?

EPF contributions must be remitted to KWSP by the 15th of the following month. Example: January contributions due by 15th February. Late payment incurs dividend loss and penalties.

What is the penalty for late EPF payment?

Late EPF payment penalty: Loss of annual dividend (typically 5-6%) on the late amount, plus administrative charges. Persistent non-payment can lead to prosecution under EPF Act 1991 with fines up to RM10,000 or imprisonment.

What is the EPF contribution table 2025?

The EPF Third Schedule contribution table 2025 shows exact contribution amounts for wage ranges from RM1 to RM70,000+. For example: RM3,000 wage = Employee RM330 + Employer RM390 = Total RM720. Visit KWSP website or use our calculator for exact amounts.

How much EPF should I contribute for RM5,000 salary?

For RM5,000 monthly salary: Employee contributes RM550 (11%), Employer contributes RM650 (13%), total RM1,200 monthly. If salary exceeds RM5,000, employer rate drops to 12% (RM600), total RM1,150.

What is the difference between EPF and KWSP?

EPF (Employees' Provident Fund) and KWSP (Kumpulan Wang Simpanan Pencari Kerja) are the same - KWSP is the Malay name for the national pension fund. Both refer to the Employees' Provident Fund Act 1991.

Can EPF contribution be claimed as tax deduction?

Yes, employee EPF contributions are tax-deductible under Section 33 of the Income Tax Act. Maximum tax relief is RM4,000 per year combining EPF, life insurance, and approved retirement savings.

What happens to EPF when employee resigns?

Upon resignation, employees can withdraw their EPF savings (subject to conditions). The employer must ensure all contributions are paid up to the last working day. Incomplete contributions can be reported to KWSP.

Is overtime pay subject to EPF?

Yes, overtime pay is subject to EPF contribution. However, there's a monthly overtime ceiling of RM500 - only the first RM500 of overtime pay per month is counted for EPF calculation.

What is the EPF rate for first 60 months of service?

There is no special EPF rate based on tenure. The standard rates apply regardless of years of service. Only age (60 and above) affects the contribution rate.

How do I report EPF contributions to KWSP?

Employers submit EPF contributions via KWSP i-Account online portal, using Form E (monthly return), or through approved payroll software. Contributions must be paid by the 15th of the following month.

What is the EPF contribution for contract workers?

Contract workers are entitled to EPF if they work under a contract of service (not contract for service). Both employer and employee must contribute if the worker meets eligibility criteria (Malaysian citizen, aged below 75).

Can employer reduce EPF contribution?

No, employers cannot reduce their EPF contribution below the statutory rate. However, employees earning above RM5,000 can voluntarily reduce their rate from 11% to 9% by submitting Form KWSP 17A.

Malaysia-compliant guide

Last updated: February 2026

EPF Contribution Rates 2025-2026: Complete Employer & Employee Guide

Understanding KWSP contribution rates, Third Schedule, and compliance requirements

Direct answer

EPF rates 2025: Employee 11% (or 9% optional), Employer 13% (≤RM5,000 salary) or 12% (>RM5,000). Age 60+: Employee 0% (voluntary), Employer 4%. No wage ceiling. Due by 15th monthly. Use Third Schedule for exact amounts.

This comprehensive guide covers EPF contribution rates for 2025, including employee and employer rates, age-based variations, Third Schedule usage, and payment deadlines.

Key facts

High-signal points for buyers comparing options.

Employee Rate

11% (9% optional)

Employer (≤RM5k)

13%

Employer (>RM5k)

12%

Age 60+ Employee

0% (voluntary)

Age 60+ Employer

Wage Ceiling

None

Accurate EPF calculations using Third Schedule

Avoid late payment penalties

Proper handling of age-based rates

Correct optional rate elections

Platform

What HavaHR brings together

Payroll, people operations, statutory calculations and HR documents in one workflow built for Malaysian SMEs.

Third Schedule calculation

Age-based rate automation

Optional rate tracking (9%)

Payment reminder alerts

KWSP submission tracking

Multi-employee processing

Rate change updates

Audit-ready reports

Comparison

Compare the important differences quickly

Category	Employee Rate	Employer Rate	Total
Standard (≤RM5,000)	11%	13%	24%
Standard (>RM5,000)	11%	12%	23%
Optional (>RM5,000)	9%	12%	21%
Age 60+ (mandatory)	0%	4%	4%
Age 60+ (voluntary max)	5.5%	4%	9.5%

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EPF/SOCSO/EIS Calculator SOCSO Claim Process EIS Benefits Explained Payroll Software Malaysia

Authority sources

KWSP Official Portal

Official EPF updates and contribution guidance

PERKESO Official Portal

Official SOCSO and EIS contribution references

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