EPF Calculator 2022 and EPF Contribution in Malaysia
EPF Calculator Malaysia
EPF also known as KWSP, Employee Provident Fund or Kumpulan Wang Simpanan Pekerja, is a Malaysia government statutory body under the category of Ministry of Finance.
EPF manage all Malaysian employee savings plan which allow those employees get their retirement fund and retirement plantings. For each Malaysia’s employee have to contribute EPF either they are working in private sector or voluntary for non-Malaysia citizens.
Learn more about iFLEXiHRMS Payroll System towards employee EPF Calculator 2022 Malaysia
iFLEXiHRMS Payroll System allow you to one click process employee’s EPF calculator. It is a simple and easy payroll software system by allowing your company employee’s EPF calculator in Malaysia can be done easily and efficiency.
iFLEXiHRMS Payroll System free up your time from tedious and complex payroll calculations, preparation of pay slips and all statutory submissions. It built for your business, and grow with your business.
What is EPF Calculator Malaysia?
Malaysia EPF was founded in 1951 due to the effective of EPF Act 1951. However, in 1991 of EPF Act requires all employees and their employers have to contribute the amount of percentage towards their salary to their retirement savings, all of the employees are able to perform EPF withdrawal after fulfill some certain requirements.
The EPF is intended to help Malaysia’s employee by allowing them to save their current saving and process a lifetime banking scheme.
As per year 2020, Malaysia EPF funding had reached RM998 billion, making it the 4th largest pension fund in Asia and 7th largest in the world, with the participation of over 7,000,000 employees and 500,000 employers contribution.
EPF has their vision which is helping all Malaysia’s employees achieve a better future during retirement period and their mission is safeguard all employee’s contribution and deliver professional & excellent services.
You may have a quick glance at EPF Calculator info here https://www.kwsp.gov.my/about-epf/corporate-profile
How does EPF Calculator works?
EPF keep Malaysia employee’s salary percentage which familiar known as 11% (some 7% with the new laws and regulations) while employers contribute 13% of the employee salary. Both of the amount of 11% from the employee and 13% from the employer add up together and store 70% into personal EPF account 1 while another 30% store into personal EPF account 2 respectively. Both account 1 and account 2 vary due to its functions and usage. The main features for account 1 and account 2 are used by the following:
|
EPF Calculator Malaysia/ EPF Calculation |
Account 1 |
Account 2 |
|
Amount |
70% on contribution |
30% on contribution |
|
Withdrawal Age |
55 |
50 |
|
Withdrawal Conditions (Fulfill withdrawal age or not) |
Retirement Incapacitation Leaving the country Death |
Education Buy Home Build Home Housing Loan Flexible Housing Health & Medical Reach 1 Million Saving |
While getting your salary, your employer will help you by processing EPF deduction accordingly to your contribution percentage preferences (7% or 11%) to your EPF account. You can check your EPF account balance by login to EPF https://secure.kwsp.gov.my/member/member/login by filling in your EPF account ID and password.
In addition, there is a quicker way to check your EPF account balance by downloading i-Akuan from your mobile store, which is a simple mobile app to access EPF features.
Who can register as a EPF member?
In order to register as a EPF member, you are required to fulfill to the following conditions:
- Company directors who receive a salary/wages
- Full time, part time employee in Malaysia
- Employees whom ages below 75 years’ old
- Employee who have withdrawn their EPF savings, and work with employers which are not the federal or state governments, or any statutory bodies & local authorities
- Employee who have recover from incapacitation or re-employed
How to register as a EPF member?
There are several ways to register your EPF account, chose the one which are the most comfortable to you.
- Automatic Registration / Employer Registration
Upon your first job in Malaysia, your employer will help you to contribute your EPF towards EPF office. The registration will be made based on your name and ID card number.
- Registration through counter
Bringing your myKad to the nearest EPF branch, look for registration and you will be guided from our EPF operator. However, for those unsuccessful case of verification or non-Malaysian citizen, you are required to fill a KWSP 3 Form in order to complete the registration.
- Registration through Employer i-Akaun
Employer can register you through Employer i-Akuan, you will require to submit your full name as per IC, MyKad No., and your gender. You will get the notification from EPF once your registration is success.
- Registration through Kiosk
You are required to bring your Mykad to the nearest branch of EPF and proceed with the EPF Smart Kiosk registration. You will require to present your thumbprint verification for completion the EPF registration.
How to End/Stop EPF Calculator Malaysia?
You can end/stop your EPF contribution after certain conditions are met, which are the following:
- No new EPF contribution after member reached or above 75 years’ old and remain a zero balance in EPF account.
- The member leaves the country.
- EPF account status is Death Withdrawal with zero balance in account.
- EPF Savings had been transferred.
- Foreigner has meet the Full Withdrawal requirement, which is 55 / 60 years old.
Learn more about iFLEXiHRMS Payroll System towards employee's EPF Calculator Malaysia
iFLEXiHRMS Payroll System allow you to one click process employee’s EPF Calculator. It is a simple and easy payroll software system by allowing your company employee’s EPF calculator Malaysia can be done easily and efficiency.
iFLEXiHRMS Payroll System free up your time from tedious and complex payroll calculations, preparation of pay slips and all statutory submissions. It built for your business, and grow with your business.
Investment on EPF
You are able to proceed an investment on EPF by transferring part of your funds on account 1 for investments via the appointed Fund Management Institutions (FMIs), including Unit Trust Management Companies and Asset Management Companies, which allow you had the flexibility to diversify your retirement portfolio and enhance your retirement savings.
Who can apply EPF investment?
Member of EPF that below ages of 55, and have sufficient savings support from account 1 is eligible for applying this EPF investment. Check out for more about EPF investment https://www.kwsp.gov.my/member/investment
Withdrawal on EPF
You can make withdrawals on EPF account through the following:
- You had reach age 55
- You are leaving the country
- Incapacitation
- Death
These are the required/supporting document for withdrawing EPF account:
- KWSP form AT (2) – Application for Matrimonial Asset Claim
- Identification Card (IC), Use passport if you are a non-Malaysian recipient
- Court Order and Certificate of Making Decree Nisi Absolute
Incapacitation Withdrawal on EPF
Incapacitation Benefits also known as Incapacitation Withdrawal on EPF is paid to the member who is unable to continue his/her works due to incapacitation. The amount of incapacitation withdrawal is RM5,000.00. Which will be giving to the incapacitation EPF’s member.
However, the Incapacitation Withdrawal has to meet the following conditions:
- The Incapacitation member has to be a Malaysian.
- Age of member has not reach 55.
- The incapacitation member has to apply for the fund within 12 months where the count begins by the day he/she is unable to work.
- The last period of service/ last job must be at least serve a 6 continuous months.
- The termination/discontinue of work must be due to incapacitation.
- The incapacitation Withdrawal can only be claimed once per member.
Death Withdrawal on EPF
Death Benefits also known as Death Withdrawal on EPF is paid to the member’s dependent or next-of-kin, usually his/her family or relative. The amount of death withdrawal is RM2,500.00. Which will be giving to the death EPF’s member family or relative.
However, the Death Withdrawal has to meet the following conditions:
- The death Withdrawal member has to be a Malaysian.
- Age of member has not reach 60.
- The Death Withdrawal dependent has to apply for the fund within 6 months where the count begins by the day member pass away.
Learn more about iFLEXiHRMS Payroll System towards employee's EPF Calculator Malaysia
iFLEXiHRMS Payroll System allow you to one click process employee’s EPF calculation. It is a simple and easy payroll software system by allowing your company employee’s EPF calculator Malaysia can be done easily and efficiency.
iFLEXiHRMS Payroll System free up your time from tedious and complex payroll calculations, preparation of pay slips and all statutory submissions. It built for your business, and grow with your business.
Dividend rate of EPF Calculator Malaysia
All contribution in EPF will get a dividend as per rated each year. It works like your fixed deposit in your bank account.
The dividend as per past year as follows:
|
2000 |
2001 |
2002 |
2003 |
2004 |
2005 |
2006 |
2007 |
2008 |
2009 |
|
6.00% |
5.00% |
5.25% |
5.50% |
5.75% |
5.00% |
5.15% |
5.80% |
5.50% |
5.65% |
|
2010 |
2011 |
2012 |
2013 |
2014 |
2015 |
2016 |
2017 |
2018 |
2019 |
|
5.80% |
6.00% |
6.15% |
6.35% |
6.75% |
6.40% |
5.70% |
6.90% |
6.15% |
5.45% |
The dividend of EPF in 2020 remains at 5.20%
However, all of the EPF dividend rate will come with a minimum rate of 2.5%. Your EPF dividend calculation will be based on your contribution amount.
Tax Exemption on EPF
For each EPF contribution is able to declare for tax exemption with an amount up to RM4,000.00. Which is capable for allowing you to exempt for paying personal income tax, the returns on the EPF Malaysia investment are also eligible for tax exemption.
Find out more about newest personal TAX checklist YA 2021 here.
Types of earning should contribute to EPF Calculator Malaysia
We said that employee shall contribute their salary portion to EPF Malaysia. However, which types of the earning required for contribution?
EPF Malaysia contribution of an employee are paid by various of method, which are including:
- Cash
- Postal Order
- Bank Cheque
- Internet banking
- Electronic fund transfer (EFT)
- Bank draft
- Any other methods approved by EPF
As a member of EPF, we shall know that which type of income or earnings are allowed to be contributed.
Here are the followings subject that can be contributed to the EPF.
- Salary
- Payment for unlisted annual or medical leave
- Bonus
- Allowance
- Commission
- Incentive
- Arrears of wages
- Wages for maternity leave
- Wages for study leave
- Wages for half day leave
- Other payments under service contact or accepted by EPF
Here are the followings subject that cannot be contributed to the EPF.
- Service Charges
- Overtime
- Gratuity
- Benefits for personal retirement
- Retrenchment, temporary lay-off or termination benefits
- Travelling allowances or travel concession
- Payment in lieu of notice of termination service
- Director’s fee
EPF contribution rate/EPF calculator Malaysia for contribution
Alright, had a big understanding of our EPF, do you know how to calculate your EPF contribution?
For each employee or put it EPF member, which is contribute 11% of their salary. However, the employees are now selective with the contribution 7% or 11% of their salary.
However, for the case of employee whom ages have reach above 60, EPF have an arrangement for them by lowering their contribution to 0% a month instead of pervious 11% a month. Their employers have to remains 4% a month contribution instead of previous 13% a month.
The arrangement of EPF is allowing employees that over year of 60 are still productive and active towards the economy and their country.
In addition, the EPF contribution rate is vary according to your monthly salary rate. Let’s have a view of table here.
The table for 2021 employee and employer EPF contribution rate.
|
Employee’s Status |
Monthly Salary Rate |
Stage 1 (Below 60 years old) |
Stage 2 (Age 60 and above) |
|
1. Malaysian 2. Permanent Resident (PR) 3. Non-Malaysians (registered as member before 1 August 1998) |
No limit |
|
*Applicable for Malaysian only Employee’s Share: 0% Employer’s Share: 4% |
|
Below RM5000 |
Employee’s Share: 9% Employer’s share: 13% |
*Applicable for Permanent Resident (PR) and Non-Malaysians only (registered as member before 1 August 1998) Employee’s Share: 5.5% Employer’s Share: 6.5% |
|
|
Above RM5000 |
Employee’s Share: 9% Employer’s Share: 12% |
*Applicable for Permanent Resident (PR) and Non-Malaysians only (registered as member before 1 August 1998) Employee’s Share: 5.5% Employer’s Share: 6.% |
|
|
Non-Malaysians (registered as member before 1 August 1998) |
No limit |
Employee’s Share: 9% Employer’s Share: RM5.00 |
Employee’s Share: 5.5% Employer’s Share: RM5.00 |
Note:
Employers are forbidden to calculate the employer’s and employee’s share based on exact percentage that listed above EXCEPT for those whom salaries are exceed RM20,000.00, else the total contribution of EPF which includes cents shall be rounded to the next ringgit. Learn more about monthly contribution rates here https://www.kwsp.gov.my/documents/20126/927226/BI-Jadual+Ketiga+.pdf
Example of EPF Calculator 2022 Malaysia for HRMS Payroll System
Here we will provide a certain example for EPF calculation 2022 and EPF calculator 2022 that meets EPF services standards.
- Flexi has a salary of RM2,000 per month, how much does he has to contribute to EPF?
Flexi has RM2,000.00
According to the EPF contribution table
From RM1980.01 to 2000.00
Employee’s share: 180.00
Employer’s share: 260.00
Total EPF Contribution of Flexi is RM440.00
- Flexi has a salary of RM2,000 and a wages RM500 per month, how much does he has to contribute to EPF?
Flexi has RM2,000.00 and Wages RM500.00
RM2,000.00 + RM500.00 = RM2,500.00
According to the EPF contribution table
From RM2480.01 to 2500.00
Employee’s share: 250.00
Employer’s share: 325.00
Total EPF Contribution of Flexi is RM550.00
- Flexi has a salary of RM2,000 per month and get a bonus of RM2,000, how much does he has to contribute to EPF?
Flexi has RM2,000.00 and Wages RM2,000.00
RM2,000.00 + RM2,000.00 = RM4,000.00
According to the EPF contribution table
From RM3980.01 to 4000.00
Employee’s share: 360.00
Employer’s share: 520.00
Total EPF Contribution of Flexi is RM880.00
Visit EPF branch near you!!!
EPF had several branches in Johor, try to have a look and go for that one closest to your home!
|
Details |
Operating Hours |
|
EPF Batu Pahat No. 6 & 8, Jalan Sulaiman, 80300 Batu Pahat, Johor
FAX: 07-4341170 |
Office Sunday – Wednesday: 8.00AM – 4.45MM Thursday: 8.00AM – 4.30PM
Counter Sunday – Thursday: 8.30AM – 4.30PM
|
|
EPF Johor Bahru Tingkat 1 & 12-17, Bangunan KWSP, Jalan Dato’ Dalam, 800000 Johor Bahru, Johor
FAX: 07-2225284 |
Office Sunday – Wednesday: 8.00AM – 4.45MM Thursday: 8.00AM – 4.30PM
Counter Sunday – Thursday: 8.30AM – 4.30PM
|
|
EPF Kulai No. 259 & 260, Jalan Kenanga 29/8, Indahpura 81000 Kulai Johor
FAX: 07-6625924 |
Office Sunday – Wednesday: 8.00AM – 4.45MM Thursday: 8.00AM – 4.30PM
Counter Sunday – Thursday: 8.30AM – 4.30PM
|
|
EPF Mersing Lot. No. 2, Tingkat Bawah, 1 & 2, Bandar Tepian Sungai, Jalan Jemaluang, 86800 Mersing. Johor.
FAX: 07-7982644 |
Office Sunday – Wednesday: 8.00AM – 4.45MM Thursday: 8.00AM – 4.30PM
Counter Sunday – Thursday: 8.30AM – 4.30PM
|
|
EPF Muar Ground Floor, Level 1, 2 & 3 No. 9, Jalan Petrie 84000 Muar Johor
FAX: 06-9538340/8341 |
Office Sunday – Wednesday: 8.00AM – 4.45MM Thursday: 8.00AM – 4.30PM
Counter Sunday – Thursday: 8.30AM – 4.30PM
|
|
E PF Segamat No. 5 & 6 Jalan Genuang Perdana Taman Genuang Perdana 85000 Segamat Johor
FAX: 07-9437615 |
Office Sunday – Wednesday: 8.00AM – 4.45MM Thursday: 8.00AM – 4.30PM
Counter Sunday – Thursday: 8.30AM – 4.30PM
|
How to calculate employee EPF in just one GO?
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Learn more about iFLEXiHRMS Payroll System towards employee's EPF calculator Malaysia
iFLEXiHRMS Payroll System allow you to one click process employee’s EPF calculation. It is a simple and easy payroll software system by allowing your company employee’s EPF calculator Malaysia can be done easily and efficiency.
iFLEXiHRMS Payroll System free up your time from tedious and complex payroll calculations, preparation of pay slips and all statutory submissions. It built for your business, and grow with your business.
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