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In compliance with KWSP statutory requirement, the EPF contribution rate is to remain unchanged until 60 years of age. Thus, it will still stand at 12 per cent [12%] for monthly wages of RM5,000 and above, and 13 per cent [13%] for monthly wages of RM5,000 and below, from employers; 11 per cent [11%] from employees as tabled below
TABLE: EPF STATUTORY CONTRIBUTION RATE
Therefore to ensure correct EPF contribution in this new legislation, you are advised to review and set the correct rates to apply in the EPF Table for correct calculation during payroll processing.
Just follow these simple steps as listed below: –
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EPF Table Setups
Step 1 Go to Housekeeping > Setup > Government Table > EPF Table
Step 2 In EPF Table screen, you may use any table row from 2 – 5 to set 5.50% for Employee column; 6.00% for Employer column.
The reason for this recommendation is:
Table 1 is referenced to the commonly use default EPF rate, and also the default value shown in personnel maintenance screen. Therefore, it is advisable to leave it intact for ease of employee setup
Table 6 is referenced to store the fixed rate, 11.00% for Employee column; 5.00% for Employer column
Personnel File Maintenance Setup
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Step 1 Go to Personnel > Personnel File Maintenance
Step 2 Click on Govern. Tab > go to EPF section
è In the Table field, select the correct table row for use on the employee
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In the example shown, it is table 5 which is set to 5.50% Employee and 6.00% Employer
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è In the Category field, select “X” if the employee is not subjected to EPF contribution