Government reduced the Employees’ Provident Fund contribution rate to 7% from 2020, followed by an increase to 9% in 2021. This measure resumes at 11% from 30 June 2022.
So, how big is the difference between the 9% and 11% contribution rates? Here is an example for a monthly salary of RM4,000. At a 9% contribution rate, you would pay RM360 per month, while at an 11% CPF contribution rate, you would pay RM440 per month – a difference of RM80.
In other words, after the EPF contribution rate resumes at 11%, a salaried person earning RM4,000 per month will have RM80 less disposable income per month which will be credited to the EPF account.
