Economic Stimulus Package 2020: Statutory Employee Contribution For EPF Reduced To 7%
Author Avatar

As part of the 2020 Economic Stimulus Package announced by interim Prime Minister Tun Dr Mahathir Mohamad, the statutory employee contribution for the Employees Provident Fund (EPF) has been reduced to 7% per month.

Currently, the statutory contribution rate for employees is 11% for EPF members below age 60, and 5.5% for those aged 60 and above. While the contribution for members above 60 years old will remain at 5.5%, members below 60 will effectively have 4% more cash on hand each month.

Designed to encourage domestic consumption, the 4% reduction in employee contribution will see EPF members have a cumulative RM10 billion to use until the rate reverts to 11% in 2021. This 7% contribution rate will be in effect from 1 April 2020 until 31 December 2020.

5 1 vote
Article Rating


Comments (0)

Notify of

Inline Feedbacks
View all comments
Top Personal Finance News Articles
Post Image
Petrol Price Malaysia Live Updates (RON95, RON97 & Diesel)
- 29th March 2023
We provide weekly updates on every Friday at 5pm on the prices of RON95, RON97 and Diesel in Malaysia and a chart that shows the movement of fuel prices across a 6-week period. Bookmark this page now!
Post Image
Astro 4K Ultra HD Broadcast To Be Available For Subscription By The End of This Year
Brian Chung
- 14th August 2018
By the end of 2018, Astro customers will be able to watch football matches in Ultra HD. Read on to know more about the 4k Ultra HD service.
Post Image
Touch n Go RFID: What Malaysian Road Users Need To Know
Jacie Tan
- 10th August 2018
Everyone’s talking about Touch ’n Go RFID being used at Malaysian highway tolls soon – here’s what you need to know about it.
Post Image
Best High Interest Savings Accounts In Malaysia (January 2023)
Pang Tun Yau
- 11th January 2023
Make your money work for you by depositing them into the best high-interest savings accounts in Malaysia!

Related articles

Related Posts Image
Related Posts Image
Related Posts Image
Related Posts Image