New EPF Reduction Plan for Private Sector Employees

Reduction in EPF employee rate 11% to 8% effective Jan 2009 to Dec 2010

Frequently Asked Questions (FAQ)

Q1. When does the reduction of employee EPF deduction take effect?

A1. In January 2009 salary. Your EPF deduction in Jan 2009 will be 8% of wages and will appear in Yr2009 EPF statement as “Caruman Bulan Feb 2009”.

Q2. Will the employers’ contribution also be reduced?
A2. No.

Q3. How can I retain my current EPF contribution rate of 11%?
A3. Fill up Form KWSP 17A (AHL) – Notis Pilihan Mencarum Melebihi Kadar Berkanun and submit to HR

Q4. When is the deadline to submit Form KWSP 17A (AHL) to HR for Jan 2009 salary?
A4. Original signed hardcopy must reach HR by 7 Jan 2009. Forms that reach HR after this date will only be processed in the following month

Q5. What does HR do with Form KWSP 17A (AHL)?
A5. HR need to verify and confirm that the employer will adhere to make additional deduction. HR will send the form to EPF office.

Q6. What if EPF decides to revise its decision so there is no mandatory rate reduction to 8% but I have submitted Form KWSP 17A (AHL) to HR?
A6. Your Form 17A (AHL) will still be enforced. You need to raise Form KWSP 18A (AHL) - Notis Pembatalan Pilihan Mencarum Melebihi Kadar Berkanun to cancel your election for additional contribution. To avoid this administrative hassle, you are advised to only fill up Form KWSP 17A (AHL) after 8 Dec 2008 since EPF is expected to issue a new Form KWSP 17A (AHL) and any announcement after 1 Dec 2008.