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.

Step 1:
Go to Manage Company

Step 2:
Go to Payroll Info tab

Step 3:
Click on the new MANAGE EPF RATE button found under Company Payroll Info

Step 4:
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.

Step 5:
You may verify employees' EPF rate by viewing their EPF contribution rate under “Staff Payroll info” as shown below

IMPORTANT NOTE:

  • 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.

Source:
https://www.kwsp.gov.my/documents/20126/927226/BI-Jadual+Ketiga-2020+KWSP.pdf

Related Article(s): [MY] EPF Changes from 11% to 9%

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