UBS Update: Payroll - EPF Statutory Contribution Rate Setup (Effective on August 2013)

In compliance with KWSP statutory requirement, the EPF contribution rate is to remain unchanged until 60 years of age. Thus, it will still stand at 12 per cent [12%] for monthly wages of RM5,000.01 and above, and 13 per cent [13%] for monthly wages of RM5,000.00 and below, from employers; 11 per cent [11%] from employees as tabled below

TABLE: EPF STATUTORY CONTRIBUTION RATE

Reference: http://www.kwsp.gov.my/portal/documents/10180/175560/TABLE_EPF_STATUTORY_CONTRIBUTION_RATE_AUG_2013.pdf

Therefore to ensure correct EPF contribution in this new legislation, you are advised to review and set the correct rates to apply in the EPF Table for correct calculation during payroll processing.

Just follow these simple steps as listed below:

EPF Table Setups

Step 1 Go to Housekeeping > Setup > Government Table > EPF Table.

Step 2 In EPF Table screen, you may use any table row from 2 – 5 to set 5.50% for Employee column; 6.00% for Employer column.

The reason for this recommendation is:

Table 1 is referenced to the commonly use default EPF rate, and also the default value shown in personnel maintenance screen. Therefore, it is advisable to leave it intact for ease of employee setup.

Table 6 is referenced to store the fixed rate, 11.00% for Employee column; 5.00% for Employer column.

Personnel File Maintenance Setup

Step 1 Go to Personnel > Personnel File Maintenance

Step 2 Click on Govern. Tab > go to EPF section

--> In the Table field, select the correct table row for use on the employee

In the example shown, it is table 5 which is set to 5.50% Employee and 6.00% Employer

--> In the Category field, select “X” if the employee is not subjected to EPF contribution

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