HR ministry examining proposal for employers to pay 20% to EPF

30 May 2023 11:51am
picture for illustrative purposes - FILEPIC
picture for illustrative purposes - FILEPIC
KUALA LUMPUR - A proposal for employers to contribute 20 per cent towards the the Employees Provident Fund (EPF) is currently being examined by the ministry.

The Star reported that the ministry's newly appointed secretary-general Datuk Seri Zaini Ujang said that the implementation of the proposal would involve a number of procedures.

Zaini said the ministry will discuss the matter comprehensively, so that they would be able to achieve an inclusive approach.

“(If implemented, we) need to change the Acts and there are other issues (to tackle).

“We not only have EPF but also Socso (Social Security Organisation) contributions," he told local news outlet the Star.

Currently employees contribute 11 percent of their monthly salary to EPF and employers contribute 12 or 13 per cent of their employees salary in accordance to the statutory rate

The contribution rate is 1.75 per cent for Socso for employer’s and 0.5 per cent from an employee’s monthly wages.

The rates are provided for under the Employees Provident Fund Act 1991 and Employees’ Social Security Act 1969.

It was reported recently that Prime Minister Datuk Seri Anwar Ibrahim noted calls by employees for employers to pay a 20 per cent contribution towards EPF
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He said it will be brought up to the cabinet for discussion.
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