The Employee Provident Fund (EPF) has decided to reduce its members’ monthly contribution rate from the usual 11% to 8% of their salary with effect from January 2009.
Deputy Prime Minister, Datuk Seri Najib Tun Razak made the announcement and told that the move is done to give a higher disposable income to employees, as well as making room for better financial management.
With the new rate, an employee earning RM2,000 per month will be contributing RM160 monthly instead of RM220 to their pension fund.
The implementation will be made automatically, and those members who wish to maintain their contribution at 11% would be required to fill up Form KWSP 17A (AHL) and make the submission via their employers. The form will be made available from the coming December and can be obtained from any EPF office or downloaded from EPF official website.