Want to Maintain your EPF Contribution at 11%? Download the Form 17A here
Following Prime Minister YAB Datuk Seri Najib Tun Abdul Razak’s announcement during the presentation of the revision of Budget 2016 today, the Employees Provident Fund (EPF) announces the reduction in the employees’ monthly statutory contribution rate from 11% to 8% for members below age 60 and 5.5% to 4% for those age 60 and above, effective March 2016 until December 2017 salary.
However, members can opt to maintain the current contribution rate of 11% by completing the KWSP 17A (Khas2016) – Notice to Contribute More Than Statutory Rate (Employee’s Share) and submit to their respective employers, who will then forward it to the nearest EPF branch.
There are many factors need to be taken into consideration before making a decision whether the 3% reduction is worth taking such as losses on dividend from EPF, opportunity to invest in higher yield investments, tax implications and etc. Please refer to our article on Reduction in Employees’ EPF Contribution Rate 2016 for further details.
Download the Form 17A.