An employee who is not under pension plan must contribute some part of their earnings to their EPF or KWSP account. The normal statutory contribution is 11% but for the period of between Jan 2008 and Dec 2009, the rate is 8% (will revert back to 11% after the stipulated period).
To do that, first thing he or she must have is a registered EPF employee account.
Similarly, an employer is required to fulfill their obligation in contributing to the employee’s EPF account as well. The statutory employer rate is 12%. And to contribute to the employee’s EPF account, a company needs to have a registered EPF employer account.
Registering an EPF account – either the employee account or the employer account – is quite simple, even though the process is somewhat different, and take different time to complete.
Registering for EPF employer account
For an employer, the company needs to send their representative to the nearest EPF office, get the application form and talk to the EPF officer in charge. They will be kind enough to explain about all the procedures and the associated documents required.
As companies and businesses come in different forms and structures (e.g. sole proprietorship, partnership, registered corporation and so on), the complexity of the registration process inevitably varies. Of course, the sole proprietorship will have the easiest and simplest way. As a rule of thumb, for the sole proprietary business, all the documents obtained during the SSM registration will be required to produce (original and photocopy), as well as the owner’s identity card (IC).
Once registered, an employer will be given an EPF employer account number. All statutory contributions for this month must be done before 15 of the next month, meaning that January contribution must be made before 15 February.
Registering for EPF employee account
Unlike the employer account, the employee EPF account registration is much, much easier, and rather than taking days or months, the process can be completed during one sitting. All you need to do is bringing a photocopy of your IC (certified true copy) alongside the original one to the nearest EPF office, fill up the application form, tender your thumb print at the counter, and you are as good as done.
Alternatively, there is a ‘lazy’ way to have your account registered – by having your employer to do it for you. This way, there is no need for you to be present at the EPF office.