How to Maintain Employees' Contribution Rate at 11%

As you might have known, our prime minister Datuk Seri Najib Razak recently announced Malaysian employees will be contributing 3% less for their Employees Provident Fund (EPF) every month for two years when he unveiled the revised Budget 2016.

[Tip 1]: The reduction in employees' contribution rate (from 11% to 8%) will be effective from March 2016.

While there is a slight excitement as monthly net income is slightly higher now, this also means our retirement fund is kept lesser than last time where we have to contribute 11% of the salary to the retirement fund. Hence, it is debatable and employees start thinking if this is a good strategy. 

Nonetheless, employees will now have the option of maintaining their contribution rate to EPF at 11% by following the simple steps below.

How to maintain your employees' contribution rate at 11%

1. Click here to download the application form.
   
   
   
2. Write down your details including your EPF no, IC number, Name and Signature under Section B (Maklumat Ahli/Pekerja)
3. Pass that to your employer and you are done.

You can actually see that under Section B where you have 15 rows to fill up employees' names. This is saying if you have other colleagues that wish to maintain the contribution rate, you all can just fill up once in this form and pass to your employer rather than doing it separately/individually. Employers will then forward it to the nearest EPF branch.

[Tip 2]: Employers' contribution rate of 12% (for those earning above RM 5,000) and 13% (for those earning below RM 5,000) would remain unchanged. 

[Tip 3]: This reduction in employees' contribution rate will be imposed from March 2016 till December 2017.