New Minimum Statutory Rate For Employees Above Age 60 Takes Effect
The Employees Provident Fund (EPF) announced that the minimum Employers’ share of EPF statutory contribution rate for employees above age 60 who are liable to contribute will be reduced to 4% per month, while the Employees’ share of contribution rate will be 0%.
The new minimum statutory rates will start with the January 2019 salary/wage for contribution month of February 2019.
The move to reduce the statutory contribution rates follows the Government’s proposal during the tabling of Budget 2019 on 2 November 2018, to help increase the take-home pay for employees who continue to work after reaching age 60. The reduction in employers’ share to minimum 4% would also encourage employment opportunities for workers above 60 years of age, thus ensuring the population above 60-years-old to remain productive and active in the economy.
For more details, please refer to the EPF website at www.kwsp.gov.my