(updated on 9 May 2024)
EPF
FAQ
- What is the definition of ‘Employer’?
An employer is defined as a person(s) with whom an employee has a contract of service or apprenticeship. Employers include:- a. Managers, agents or persons responsible for the payment of salary or wages to an ’employee’
- b. Any group of people whether statutory or non-statutory or incorporated
- c. Any government, government departments, statutory bodies, local authorities or other bodies specified in the Second Schedule, EPF Act 1991.
- What is the definition of ‘Employee’?
An employee is defined as a person who is employed under a contract of service or apprenticeship. The contract of service or apprenticeship can be written or verbal, expressed or implied. - Does the EPF set a minimum age to contribute?
There is no minimum age limit, every employee is liable to contribute. However, Act 350 – the Child And Young Persons (Employment) Act 1966 (Revised 1998) has set 14 years old as the minimum age for employment. - What is the ‘Contribution Month’?
Contribution month is the month in which the contribution is payable based on the previous month’s salary. For example, contributions paid in February 2014 are for January 2014’s salary. Contributions must be paid on or before 15th February 2014. - What is the payment subject to EPF?
- Salary
- Bonus
- Allowance
- Commission
- Incentives
- Arrears of salaries
- Payment in respect of unutilised annual or medical leave
- Paid maternity leave
- Paid study leave
- What is the difference between ‘Contract of Service’ and ‘Contract for Service’?
‘Contract of Service’ is an agreement, mutually agreed between an employer and an employee to complete a certain service. The agreement may be written, verbal, expressed or implied. Meanwhile, ‘Contract For Service’ is an agreement to provide service to a person or group of people. The person providing the service is free from any control and monitoring by the person or group of people receiving the service. - What is the payment not subject to EPF?
- Service charge
- Overtime payment
- Gratituity
- Retirement benefits
- Retrenchment
- Temporary lay-off & termination benefits
- Payment in lieu of notice of termination of employment
- Travelling allowance or the value of any travelling concession.
- The above list is not exhaustive.
- What does ‘Employee Liable to Contribute’ refer to?
- a. Permanent employees
- b. Contract employees
- c. Part time employees
- d. Temporary employees
- e. Probationary employees
- f. Directors receiving salary/wages
- g. Employees who have made full withdrawal under the Incapacitation Withdrawal and have since recovered and are re-employed in any service
- h. Employees who have made a 55 Years Withdrawal and are below 75 years old and still working in any occupation
- i. Employees who have made a Pensionable Employees and Optional Retirement Withdrawal and are working with employers other than the Federal or State Governments, or any statutory bodies or local authorities
- j. Employees who have made Pensionable Employees Withdrawal and were re-employed after the retirement age
- Does non-Malaysian employees have to contribute?
No, non-Malaysian employees are not required to contribute, but they are given the option to contribute. If an employee has opted to contribute, he/she and the employer are liable to contribute and not allowed to revoke the option made. - What are the employer’s responsibilities?
- 1. Register as an EPF employer within 7 days from the date of hiring workers
- 2. Registering employees as EPF members
- 3. Keeping books/sign wages/salaries
- 4. Provide salary statements/payslips
- 5. Payment of EPF contribution
- 6. Inform EPF on the following items:
- Contrasting information between EPF statement with employer records
- Change of address and name/status of employers
- Termination of liability to contribute
- Temporarily not liable to contribute (no employees temporarily)
Source: https://www.kwsp.gov.my/en/employer/responsibilities/mandatory-contribution