Question: Who has to pay EPF in Malaysia?

Is EPF compulsory for all employees in Malaysia?

The Malaysian EPF is a compulsory pension scheme for all Malaysians. … It is not compulsory for non-Malaysian citizens and non-permanent residents to contribute to the EPF, but they may elect to do so.

Is it compulsory to pay EPF?

Contributions are a mandatory salary deduction comprising the employee’s and employer’s share that has to be contributed within a specified period. … The employer shall pay contributions based on the rates specified in the Third Schedule, EPF Act 1991 (subject to change).

What is subject to EPF Malaysia?

In general, all monetary payments that are meant to be wages are subject to EPF contribution. These include: Salaries. Payments for unutilized annual or medical leave.

Do government employees have EPF?

GPF or General Provident Fund is a savings scheme available to government employees. EPF or Employees’ Provident Fund is a savings scheme available to employees in companies with more than 20 workers. PPF or Public Provident Fund is available to everyone – whether employed, self-employed or unemployed.

Can company not pay EPF?

Section 43(2) of the EPF Act 1991 states that: “Any employer who fails to make contribution on or before the 15th of every month shall, on conviction, be liable to imprisonment for a term not exceeding three years or to a fine not exceeding ten thousand ringgit or to both.”

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Is Malaysia EPF taxable?

Requirements. EPF contributions are tax-deductible up to a maximum amount of RM4,000, subject to periodic amendments by the government (excluding of exemption for life insurance premium). You are exempted from paying income tax for monies withdrawn as an EPF savings withdrawal.

Do part time employees get EPF?

From 1 October 2010 onwards, employers must make EPF and Socso contributions for their part- time employees as long as they work between 30% and 70% of the number of hours put in by their regular staff. … Therefore, for those work 70% and above of the normal working hours will consider as “full time employee”.

What payment is not subject to EPF?

Wages NOT subject to EPF contribution:

Any money or payment either in the form of a service charge, a service fee, a tip or other payments which has been paid by, charged on, collected from or voluntarily given by a customer or any other person (who is not the employer) with respect to the employer’s business.

How do EPF pay employees?

How to Pay EPF Contributions

  1. Log in to the EPF’s employer section website. …
  2. Once you have logged in, click the ‘Submit Contribution’ button.
  3. Select the contribution month. …
  4. The amount of contribution needed to be paid. …
  5. This page will display the payment methods for the contribution. …
  6. EPF Payment is successful.