As part of the Government’s Economic Stimulus Plan 2020, the statutory contribution rate for EPF has been lowered from 11% to 7%. The EPF stated last week that all members can still maintain their contribution rate at 11%, but will need to submit a special form to do so.
The form, known as Borang KWSP 17A (Khas 2020), is now available for download on the EPF website. Members who wish to maintain their rate at 11% must fill up the form and submit them to the EPF via their employers’ HR department. Most employers should have already issued notices on this and have hard copies for the form available, as the deadline for submission is 31 March 2020.
For those who decide to reduce their EPF contribution rate to 7%, they will not need to do anything – the change will be reflected in members’ salaries from April 2020 until December 2020, which means the contribution for the period of May 2020 until January 2021 will be 4% lower.