You Can Opt Out From The New 7% EPF Contribution Rate - Here's How
Author Avatar
epf kwsp 1

(Image: The Star)

Come April till December 2020, the statutory employee contribution rate for the Employees Provident Fund (EPF) will be reduced from 11% to 7%. This means that you’ll find yourself with a bit more money to spend, but at the same time, less savings in your EPF.

However, you do have the option to keep your contribution rate at 11% if you want to. According to the EPF, you will need to complete and submit Borang KWSP17A (Khas 2020) to the EPF via your employer, and your contribution rate will not be adjusted to 7%. That said, the form has yet to be released, and will only be made available at a later date.

The EPF also adds that the special form is specifically for the contribution rate revision as part of the Economic Stimulus Plan 2020. It means you should not submit the existing Borang KWSP17A (AHL), which lets EPF members apply for a permanent increase in their contribution rate until you submit a separate form – Borang KWSP18A (AHL) – to cancel it. It is meant for those who want to contribute more than the customary 11% statutory contribution rate.

The reduction in contribution rate this time round is intended to encourage domestic consumption, and was announced as part of the Economic Stimulus Package 2020. According to the EPF, it will affect your wages for April 2020 (contribution for May 2020) until December 2020 (contribution for January 2021).

The new statutory contribution rate will only apply to those below 60 years of age who are liable for contribution. It remains unchanged for employees aged 60 and above.

(Source: EPF (Twitter))

0 0 votes
Article Rating

SHARE

Comments (2)

Subscribe
Notify of
2 Comments
Inline Feedbacks
View all comments
Tang Yu Ping
2 years ago

after fill in borang KWSP18A (Khas 2020) how to submit through on line

Mary Tang
2 years ago

i would like to have an email address by scanning the ready signed borang khas 17a, or the internet link directly to browse the attached form and submit. Thank you

Top Money Management Articles
Top Money Management Articles
Post Image
Malaysia Personal Income Tax Guide 2021 (YA 2020)
Jacie Tan
- 25th March 2021
NOTE: This is the income tax guide for the year of assessment 2020. If you are filing your taxes […]
Post Image
Historical EPF Dividend Rates
The RinggitPlus Team
- 2nd March 2022
Ever wondered how this year's EPF dividend rate compares to previous years? We got you covered with our historical 11-year chart!
Post Image
Best High Interest Savings Accounts In Malaysia (May 2022)
Pang Tun Yau
- 24th May 2022
Make your money work for you by depositing them into the best high-interest savings accounts in Malaysia!
Post Image
Cash Advance on Your Credit Card? Here’s What You Need to Know.
Diana Chai
- 5th July 2019
There are days when you need cash on the double and most (if not all) credit cards have this option. But before you run to your ATM; here are some things to think about.

Related articles

Related Posts Image
Related Posts Image

How To Future-Proof Yourself Financially

Jacie Tan -
2nd February 2021
Related Posts Image

Historical EPF Dividend Rates

Jacie Tan -
2nd February 2021
Related Posts Image