Calculation of EPF Voluntary Contribution


  • If the employee and/or employer have applied to KWSP to increase their percentage rate of contribution for the employee, the contribution amount should be calculated based on the exact percentage.

  • The total contribution with cents shall be rounded to the next ringgit.


  • Example
    Let’s say the employer opts to pay a contribution of 5% above the rate set for the employer's share.


Category

Calculation
Employee ContributionFollow Third Schedule
Employer Contribution
Calculate based on the exact percentage



Example of employer voluntary contribution


Salary (RM)

Employee

Employer

Payable Contribution 

Contribution Rate

Voluntary Excess

Employer Contribution

A

(i)

(ii)

(i) + (ii) = B

A + B

Aged under 60 & salary <=RM5,000

4000

11%= RM440

(Follow Third Schedule)

13%

5%

4000 * 18% = RM720

(calculated using exact percentage)

RM1160

Aged under 60 & salary >RM5,000

6250

11%= RM693

(Follow Third Schedule)

12%

5%

6250 * 17% = RM1062.50

(calculated using exact percentage)

=RM1063

(rounded to the next ringgit)

RM1756