EPF to adjust members' contributions to 8% from January
PETALING JAYA: Employees Provident Fund (EPF) members will be able to benefit from the three percentage point reduction of their monthly contribution rate from January.
In a statement yesterday, EPF said the reduction of the employees’ contribution from 11% to 8% would be made automatically for the ease of members and to facilitate implementation measures.
“This arrangement will be implemented until the December 2010 wage,” said EPF public relations senior manager Nik Affendi Jaafar in a statement yesterday.
However, members who wish to maintain their 11% contribution rate can still do so by filling up Form KWSP 17A (AHL) and handing it to their employers for submission to EPF.
Finance Minister and Deputy Prime Minister Datuk Seri Najib Tun Razak announced recently that members could reduce their monthly contributions from 11% to 8% to give them more disposable income. The announcement was part of a stimulus package to help boost economic growth.
“The decision to reduce members’ statutory contribution rate was taken twice before in 2001 and in 2003 as part of economic stimulus packages,” said Nik Affendi.
EPF would be issuing a new monthly contributions schedule accordingly, he said.
“Members and employers may obtain the new schedule and Form KWSP 17A (AHL) from all EPF branches or download them from our website at www.kwsp.gov.my from Dec 1 onwards,” he added.