Following Budget Announcement 2021, effective as of 1st January 2021, employees have the option to reduce their EPF statutory contribution rate from 11% to 9%.
To opt an employee out of the reduced rate, simply follow these steps.
Go to Manage Company
Go to Payroll Info tab
Click on the new MANAGE EPF RATE button found under Company Payroll Info
Lastly, uncheck for any employee that has filled the Borang KWSP 17A (Khas 2021) form to maintain at 11% employee EPF contribution rate. Then hit SAVE.
You may verify employees' EPF rate by viewing their EPF contribution rate under “Staff Payroll info” as shown below
Kindly ensure that you've adjusted the EPF rate before running your monthly payroll. If you've ran your payroll and noticed all EPF reflecting 9%, you'll need to untick and tick back the employee(s) in the draft payroll to recalculate the EPF according to the new EPF settings.
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