How much EPF must an employer and employee contribute?
For Malaysian employees under 60, KWSP's Third Schedule sets the employer's contribution at 13% of monthly wages of RM5,000 or less and 12% above that, with the employee's share at 11%. Use KWSP's wage-band table for the exact amount, rounded up to the next ringgit.
Under the Employees Provident Fund Act 1991, employers contribute for their employees every month.
Rates for Malaysian citizens and permanent residents under 60 (as at October 2026, according to KWSP)
- Employer: 13% if monthly wages are RM5,000 or less, 12% if above RM5,000
- Employee: 11% of wages
Points to remember
- Contributions are calculated on wages that include salary, commission and bonuses, but exclude certain items; KWSP's guide lists what counts
- Use the wage-band table in Part A of the Third Schedule rather than a bare percentage; the total, including cents, is rounded up to the next ringgit
- Where a bonus takes a month's wages above RM5,000, the employer's rate is applied as the schedule's bonus note says
- Rates differ for employees aged 60 and above and for non-citizens; check KWSP's pages for those cases
- Payment is due by the 15th of the following month. If the 15th is a weekend or public holiday, pay on the next working day to avoid a late payment charge
In the books
- Expense the employer's share
- Record the employee's share as a deduction from pay
- Clear both when payment is made
For any specific payroll, use the current KWSP table for your employees' category.
Legal basis
- Employees Provident Fund Act 1991, Third Schedule
Sources
Applies to 2026 · Last reviewed 29 October 2026
General information for business owners, not legal, tax or professional advice. Rules change, so check the sources or ask a licensed professional before you act.
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