All employees in Malaysia who have reached the age of 16 and employed under a contract of service whether express or implied, and whether oral or in writing must be registered as a member of the Employees Provident Fund.
An employer will contribute 12% of the employee's wages and the employee contributes 11% of the monthly wages towards the employee's account.
Prior to 1st August 1998, expatriates and foreign workers were not required to contribute to the EPF although they may elect to do so.
However, with effect from 1st August 1998, all foreign workers and expatriates earning less than RM2,500 per month are also required to contribute to EPF with the exception of certain categories.
Those who are exempted from making the compulsory contribution are
- employees or workers holding Employment Pass or expatriates holding Visit Pass (Temporary Employment) whose monthly wages is not less than RM2,500
- Thai workers who enter Malaysia with a Territorial Pass
- Seamen
- Foreign domestic maids
- Self-employed persons
- Out-workers who do cleaning and alteration repair works
- Persons detained in custody, in prison, Henry Gurney School and mental hospital
- Pensioners
Nevertheless, the above can choose to contribute to the fund.
Where a member continues employment after withdrawing the contributions upon retirement, such member may opt to continue contributing to the EPF by submitting the KWSP 20/20A Form.
The statutory rates of contributions are as follows :
| % of contributions of employees' wages | ||
| Employer | Employee | |
| All except expatriates and foreign workers | 12% | 11% |
| Expatriates and foreign workers (except those excluded) | RM5 per person | 11% |
Employers and employees are, however, allowed to elect to contribute at higher rates.
