EPF (KWSP) Contribution Rates: Employer & Employee Shares
By LHDN Payroll Architect1 min read • 136 wordsLast Updated: June 2026
The Employees Provident Fund (KWSP/EPF) is Malaysia's statutory pension fund. It is mandatory for citizen employees and their employers to make monthly contributions towards retirement security. Having accurate knowledge about standard and customized EPF rates prevents paycheck mistakes.
Please Note: This calculator provides an estimate only and is not an official LHDN ( Hasil ), KWSP or PERKESO statutory submission tool. Actual PCB, EPF, SOCSO and EIS amounts may vary depending on employee status, residency, tax relief eligibility, rebates (e.g. spouse/children declarations), TP1/TP3 information, prior employment records within the year, and official updates. Please verify calculation figures against official LHDN portal, KWSP booklets, PERKESO schedules, or consult with a certified payroll/tax compliance specialist.
Standard EPF Contribution Rates (Below Age 60)
For employees under 60 who are Malaysian citizens or Permanent Residents, the standard employee monthly deduction is 11% of gross wages. On the other side, employer contribution rates are tiered: 13% for gross salaries of RM5,000 and below, and 12% for gross salaries exceeding RM5,000. These boundaries are adjusted to maximize retirement accumulation.
Non-Citizen and Post-60 EPF Contributions
For non-citizens, EPF is voluntary but follows distinct guidelines. For employees aged 60 and above, contribution rates are severely slashed to ease business hiring costs, offering nominal rates of 5.5% (or even 0% in specific exemptions) which are periodically modified by the Ministry of Finance.
Frequently Asked Questions (FAQs)
Yes. Employees can voluntary opt to increase their contribution percentage (e.g., to 12% or 15%) by filling up KWSP Form 17A (Khas) through their employer.
Related Calculators & Worksheets
Verified Official Government Sources
We encourage you to audit and verify your tax/salary breakdowns against the latest official Malaysian government directives and statutory booklets:
LHDN / HASiL (Inland Revenue Board)
Official agency governing personal income tax e-Filing, CP39, and PCB computerized policies.
KWSP / EPF (Employees Provident Fund)
Mandatory retirement savings schema, interest rates, and Form 17A contribution policies.
PERKESO / SOCSO (Social Security)
Disability schemas, table schedules, and standard employer/employee Category 1/2 rates.
PERKESO EIS / SIP (Employment Insurance)
Job loss safety plans, application process, and 0.2% rate policies.
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