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Contribution Rate For Employees Who Are Above 55 y

Effective 1 February 2008, the liability to contribute in respect of employees who have attained the age of 55 years and above is as follows:

Generally, every employer is liable to contribute to EPF on behalf of his employees until they have attained the age of 75 years regardless the employees have made 55 years withdrawal or not.

The EPF monthly rate of contributions for employees who have attained the age of 55 years and above on or after 1 February 2008 for:

i. Malaysian Citizens,

ii. Permanent Residents (PR) and

iii. Foreigners who have elected to contribute to EPF before 1 August 1998; has been revised at 6% (employer's share) and 5.5% (employee's share) of the employee's total wages; subject to Part C, Third Schedule of the EPF Act 1991. The table below shows the contribution rate for members who have attained the age of 55 and above after 1 February 2008.

Example:
Mr. Ahmad attains the age 55 on 15 April 2008. Effective contribution due June 2008 (Salary for the month of Mei 2008) the rate of contribution for Ahmad is reduced inaccordance to Part C, Third Schedule.

Nevertheless, employees and their employers can choose to contribute more than the statutory rate if they so wish by completing the form KWSP 17 (Employer) / 17A (Employee).

The EPF monthly rate of contributions for employees who have attained the age of 55 years and above on or after 1 February 2008 for foreigners who have elected to contribute to EPF on or after 1 August 1998 is at RM5.00 (employer's share) and 5.5% (employee's share) of the employee's total wages; subject to Part D, Third Schedule of the EPF Act 1991.

The table below shows the rate of contribution for the foreigners who have attained the age of 55 and above after 1 February 2008.

Exceptions
EPF monthly rate of contributions for employees who are Malaysian citizens, is maintained at 12% (employer's share) and 11% (employee's share) of the employee's total wages; subject to Part A, Third Schedule of the EPF Act 1991 under the following circumstances:

i. Employees who are Malaysian citizens, who have attained the age of 55 years before 1 February 2008 and have not made 55 years withdrawal before 1 February 2008;

ii. Employees who are Malaysian citizens, who have made 55 years withdrawal before 1 February 2008 and have elected to re-contribute to EPF before 1 February 2008.


[Note: For the above categories, the rate will change according to the current statutory rate for members who have attained the age of 55 years and above after the employees have made the 55 years withdrawal after 1 February 2008.]

Cessation of liability to contribute of employees who are not Malaysian citizens
Effective 1 September 2007, the liability to contribute to EPF of employees who are not Malaysian citizens shall cease on the last two (2) months:

i. before the expiry of such employee's work permit; or

ii. before the expiry of any extension of such employee's work permit.

Dividend Payment Until The Age Of 75
EPF will pay dividend on the member savings until he attains at the age of 75. Any savings for the member above the age of 75 will not receive any dividend.

Example:
Mr. Tan attains the age of 75 on 14 July 2008 and if he is still employed, the liability to contribute will cease with effect from August 2008 (Salary month of July 2008). EPF will pay dividend to Mr. Tan until 31 August 2008.

Member Savings Which Has Not Been Withdrawn After The Age Of 75
Members who have attained the age of 75 are encouraged to withdraw all of their savings. If the members have not withdrawn their savings by the age of 80, EPF will transfer the savings to Registrar of Unclaimed Monies.

Source: Board of Employees Provident Fund (http://www.kwsp.gov.my)

Posted Date:

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