KUALA LUMPUR, March 11 — There is no provision under the Employees Provident Fund (EPF) Act 1991 that allows its members the option to reduce the statutory contribution rate for employees.
EPF chief strategy officer, Nurhisham Hussein, in a statement here yesterday, however, said that Section 43 (3) of the Act gives members the option to contribute more than the statutory rate.
"Employees may choose to maintain the current contribution rate of 11 per cent by completing Borang KWSP 17A (Khas 2020). The form can be downloaded through the website www.kwsp.gov.my," he said.
The statement was in response to feedback from various parties to allow the rate of contribution to be reduced from 11 per cent to seven per cent on a voluntary basis and not by default as underlined under the government’s economic stimulus package.
The reduced rate of contribution is intended to cushion the blow from the economic fallout following the global Covid-19 outbreak.
— Bernama
