259 Contribution


The current rate of contribution is 23% of the employee’s wages of which 11% is from the employee’s monthly wage while 12% is contributed by the employer. The contribution is mandatory of employers, and it is the duty of employers to register with the Board under the EPFA.

With effect from January 2012, the revised employers’ statutory contribution rate will be 13% for those earning a monthly wage of not exceeding RM5,000.

Employees who are 55 years and above and earning wages not exceeding RM5,000 will also benefit from the revised rate as their employers are now required to contribute at 6.5 per cent which is an additional 0.5 per cent from the current 6 per cent, while the employees continue to contribute at 5.5 per cent.

Where the employer is a company, the responsibility of ensuring that the required contributions have been made is the responsibility of the company directors.

Monthly contributions are invested by EPF Board in a number of approved financial instruments to generate income. The financial instruments include Malaysian Government Securities, Money Market Instruments, Loans & Bonds, Equity and Property.


BCS 202/05 Corporate Compliance Management Copyright © 2011 by Wawasan Open University. All Rights Reserved.


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