From the latest 2021 budget, the government has announced the new rates of employee contribution is at 9% from 11%. The contribution rate is from January 2021 until December 2021.
The new statutory contribution rate for employees applies to those below 60 years old who are liable for contribution. However, the statutory contribution rate for employees aged 60 years old and above remains unchanged.
What should I do on this change?
As an employer, you have two options:
Option 1 - Employee who choose to follow the new minimum contribution rate of 9%
- Swingvy will adjust the employee default contribution rate to 9% from Jan 2021 to Dec 2021 payroll.
- Just process the payroll as usual.
Option 2 - Employee who choose to maintain the current employee contribution rate of 11%
- For those employees wish to remain their contribution at 11%, HR will fill up the employee information in Form 17a khas and submit to KWSP.
- Download the form from KWSP on the Syer Pekerja (the file will auto-download to excel file)
- Fill up the form
- Update it in the KWSP employer i-Account
- Then, update the EPF rates in Swingvy
Update EPF rates in Swingvy
(a) by individual update
- Select Payroll > Go to payroll employee profile
- Update 2% on employee EPF additional rate
(b) by bulk update
- Go to Payroll (Home ) > Click Employees info (Bulk update) > Download payroll bulk upload template
- Update 2% under additional employee EPF rate column for employees who choose to maintain the contribution rate of 11%
- Upload to Swingvy
For the employee that has an additional 4% EPF rates from the 7% contribution previously, Swingvy will zeroise the amount and it will appear as 9% in January 2021. This is to avoid any dispute as some employee might want to stay with 9%. Plus, the admin will need to submit a new form to KWSP on the changes for 11% contribution. Please update the new additional rates of 2% should employee wants to stay an 11% the contribution rate.