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EPF Contribution Formula:
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The Employees Provident Fund (EPF) is Malaysia's retirement savings fund where both employees and employers make monthly contributions. The standard employee contribution rate is 11% of monthly salary, while employer rates vary based on salary thresholds and company policies.
The calculator uses the EPF contribution formula:
Where:
Explanation: The calculation combines the fixed employee contribution with the variable employer contribution rate to determine the total monthly EPF contribution.
Details: Accurate EPF calculation ensures proper retirement savings, helps in financial planning, and ensures compliance with Malaysian labor regulations. It's essential for both employees to track their savings and employers to fulfill their legal obligations.
Tips: Enter monthly salary in MYR and employer contribution rate as a decimal (e.g., 0.13 for 13%). Ensure salary is a positive value and employer rate is between 0 and 1.
Q1: What is the standard employer contribution rate?
A: For Malaysian citizens below age 60, the standard employer contribution is 13% for employees earning RM5,000 and below, and 12% for those earning above RM5,000.
Q2: Are there different rates for different age groups?
A: Yes, employees aged 60 and above have different contribution rates. For those 60-75, employee contribution is optional while employer contribution remains mandatory at 4%.
Q3: Is there a maximum salary limit for EPF calculation?
A: No, there's no maximum salary limit for EPF contributions in Malaysia. Contributions are calculated on the actual salary amount.
Q4: Can employees choose to contribute at a different rate?
A: Employees can apply to contribute at a lower rate of 8% instead of the standard 11%, but this requires formal application to the EPF.
Q5: How often should EPF contributions be made?
A: EPF contributions must be made monthly, by the 15th of the following month, along with the submission of the contribution details.