{"id":1932,"date":"2014-11-06T14:22:35","date_gmt":"2014-11-06T06:22:35","guid":{"rendered":"http:\/\/www.nbc.com.my\/blog\/?p=1932"},"modified":"2024-11-01T11:14:52","modified_gmt":"2024-11-01T03:14:52","slug":"all-payments-for-wages-are-subject-to-epf-deductions","status":"publish","type":"post","link":"https:\/\/www.nbc.com.my\/blog\/all-payments-for-wages-are-subject-to-epf-deductions\/","title":{"rendered":"All payments for wages are subject to EPF deductions"},"content":{"rendered":"<p><a href=\"https:\/\/www.nbc.com.my\/blog\/all-payments-for-wages-are-subject-to-epf-deductions\/kwsp\/\" rel=\"attachment wp-att-1938\"><img loading=\"lazy\" decoding=\"async\" class=\"alignleft size-thumbnail wp-image-1938\" title=\"KWSP\" src=\"https:\/\/www.nbc.com.my\/blog\/wp-content\/uploads\/2011\/12\/KWSP-150x141.jpg\" alt=\"\" width=\"150\" height=\"141\" \/><\/a>Employers are legally required to contribute <span style=\"color: #0000ff;\"><a href=\"http:\/\/www.nbc.com.my\/EPF-SOCSO-KWSP-Perkeso.html\" target=\"_blank\" rel=\"noopener\"><span style=\"color: #0000ff;\">EPF<\/span><\/a><\/span> for all payments of wages paid to the employees.<\/p>\n<p><strong>Rate of Contributions<\/strong><br \/>\nThe current rates are 11% for the employee and 12% for the employer, but employers are advised to keep abreast with changes which may take place from time to time.\u00a0<!--more--><\/p>\n<p>In accordance with the proposal made in the Budget 2012, the contribution rate for staff earning less than RM5,000 will be\u00a011% for the employee and 13% for the employer, with effective from 1 January 2012.<\/p>\n<p>The amount of contributions must be rounded up to the next Ringgit, and contributions for a particular month must be paid before or on the 15th of that month.<\/p>\n<p><strong>Example<\/strong>:<\/p>\n<ul>\n<li>Employee A, whose wages for a month is RM1,000, the rate of contributions is RM110.00 for the employee&#8217;s share and RM130 for the employer&#8217;s share.<\/li>\n<li>Contributions for the month of February which is deduction from the January wages must be received by the EPF together with the Form EPF 6 (Form A) for February before or on 15 February.<\/li>\n<\/ul>\n<p>Deduction of salary for the employee\u2019s share of <span style=\"color: #0000ff;\"><a href=\"http:\/\/www.nbc.com.my\/EPF-SOCSO-KWSP-Perkeso.html\" target=\"_blank\" rel=\"noopener\"><span style=\"color: #0000ff;\">EPF contribution<\/span><\/a><\/span> can only be made at the time when his\/her wage is paid.<\/p>\n<hr \/>\n<p><strong>Late Contributions<\/strong><br \/>\nLate contributions are contributions for a certain month which are received by the EPF after the 15th of that month. They include arrears of contributions and contributions for a certain month\/period that have been under paid.<\/p>\n<p>For payment of arrears of contributions, employers are required to use the Form EPF 7 (Form E) and Form EPF 8 (Form F) except for contributions in respect of salary revision which are required to be paid together with the current monthly payment by using the same Form EPF 6 (Form A).<\/p>\n<p>Late payment of contributions is subject to penalties.<\/p>\n<p><strong>Making Payments<\/strong><br \/>\nPayment for EPF contributions can be made at <span style=\"color: #0000ff;\"><a href=\"http:\/\/www.nbc.com.my\/EPF-SOCSO-KWSP-Perkeso.html\" target=\"_blank\" rel=\"noopener\"><span style=\"color: #0000ff;\">KWSP<\/span><\/a><\/span> counters; through Banks that have been appointed as collection agents; through the Internet; or by mail.<\/p>\n<hr \/>\n<h4>Remuneration that subject to EPF Deductions<\/h4>\n<p>Generally, all wages paid to the directors\/staff\/employee\/workers are subject to EPF deductions. The payments by the employers subject to deductions are:<\/p>\n<ol>\n<li>Wages<\/li>\n<li>Wages in lieu of notice of termination of employment<\/li>\n<li>Payment for unutilised leaves (including annual &amp; medical leave)<\/li>\n<li>Bonuses<\/li>\n<li>Allowances<\/li>\n<li>Commission<\/li>\n<li>Incentive<\/li>\n<li>Arrears of wages<\/li>\n<li>Wages for maternity leave<\/li>\n<li>Wages for study leave<\/li>\n<li>Wages for half pay leave<\/li>\n<li>Arrears for wages arising from salary revision<\/li>\n<li>Other payments under services contracts or otherwise.<\/li>\n<\/ol>\n<h4>Payments that are not subject to EPF deductions are as follows:<\/h4>\n<div>\n<ol>\n<li>Service charges<\/li>\n<li>Overtime payment<\/li>\n<li>Gratuity<\/li>\n<li>Retirement benefits<\/li>\n<li>Retrenchment, temporary and lay-off<\/li>\n<li>Any travelling allowances or the value of any travelling concession<\/li>\n<li>Director&#8217;s fees<\/li>\n<li>Any other remuneration or payment as may be exempted by the Minister<\/li>\n<\/ol>\n<\/div>\n<div>The above list is not exhaustive. If in doubt, please contact any nearest <span style=\"color: #0000ff;\"><a href=\"http:\/\/www.nbc.com.my\/EPF-SOCSO-KWSP-Perkeso.html\" target=\"_blank\" rel=\"noopener\"><span style=\"color: #0000ff;\">KWSP<\/span><\/a><\/span> offices.<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Employers are legally required to contribute EPF for all payments of wages paid to the employees. Rate of Contributions The current rates are 11% for the employee and 12% for the employer, but employers are advised to keep abreast with changes which may take place from time to time.\u00a0<\/p>\n","protected":false},"author":3,"featured_media":6102,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[77],"tags":[90],"class_list":["post-1932","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-epf-and-socso","tag-epf-socso"],"_links":{"self":[{"href":"https:\/\/www.nbc.com.my\/blog\/wp-json\/wp\/v2\/posts\/1932"}],"collection":[{"href":"https:\/\/www.nbc.com.my\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.nbc.com.my\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.nbc.com.my\/blog\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.nbc.com.my\/blog\/wp-json\/wp\/v2\/comments?post=1932"}],"version-history":[{"count":1,"href":"https:\/\/www.nbc.com.my\/blog\/wp-json\/wp\/v2\/posts\/1932\/revisions"}],"predecessor-version":[{"id":6631,"href":"https:\/\/www.nbc.com.my\/blog\/wp-json\/wp\/v2\/posts\/1932\/revisions\/6631"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.nbc.com.my\/blog\/wp-json\/wp\/v2\/media\/6102"}],"wp:attachment":[{"href":"https:\/\/www.nbc.com.my\/blog\/wp-json\/wp\/v2\/media?parent=1932"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.nbc.com.my\/blog\/wp-json\/wp\/v2\/categories?post=1932"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.nbc.com.my\/blog\/wp-json\/wp\/v2\/tags?post=1932"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}