29 Jan - 1 min read
As many as 5.4 million Employees Provident Fund (EPF) members have decided to go along with the lower EPF contribution rate of 9% from January 2021. This number was derived after the EPF received 2.09 million applications from members who wished to maintain their contribution rate at 11%; the EPF currently has 7.49 million active members.
At the end of last year, EPF contributors were given the choice between accepting the lowered minimum employee contribution from January to December 2021, or maintaining their contributions at the statutory rate of 11% by submitting Borang KWSP 17A (Khas 2021) through their employers.
The initiative was announced by Finance Minister Tengku Zafrul Aziz as part of Budget 2021. It was aimed at increasing the take-home pay of EPF members, thus benefiting those who are still facing financial hardship arising from the Covid-19 pandemic.
This is not the first time that the EPF contribution rate has been adjusted due to the pandemic. In February 2020, the rate was reduced to 7% for the duration of April to December 2020 as part of the Economic Stimulus Package – although members were also allowed to opt out from the lowered contribution rate too.
(Source: The Star)
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