From the 2022 budget, the government help to increase money in the hands of the people, thus the EPF reduced and extend the period of the EPF minimum contribution rate from 11% to 9% until June 2022. Starting from July 2022, the minimum contribution will be back at 11%.
The new statutory contribution rate for employees applies to those below 60 years of age, who are liable for contribution. However, the statutory contribution rate for employees aged 60 years old and above remains unchanged.
What should we do about this change?
As an employer, you have two options:
Option 1 - Employees who choose to follow the new minimum contribution rate of 11%
- Swingvy will auto-adjust the employee default contribution rate to 11% starting from July 2022
- For employees who previously had an additional EPF rate on top of the 9% contribution, Swingvy will zeroise the amount and the total rate will appear as 11% starting July 2022
- Admin will need to process the payroll as usual and no amendment is needed
Option 2 - Employees who choose to contribute more than the minimum employee contribution rate (more than 11%)
- For those employees who wish to contribute more than the minimum contribution rate (more than 11%), contact KWSP and fill in the form needed and update in the employee profile starting July 2022
- Contact KWSP
- Fill up the form
- Update in the KWSP employer i-Account
- Update in the employee profile in Swingvy
Update employee EPF contribution rate in Swingvy
Update employee EPF contribution rate in the employee profile individually
Go to Payroll > People > Select employee > Bank & statutory > Edit & Save
Update employee EPF contribution rate in using bulk upload
Go to Payroll > Settings > Company settings > Employee information bulk upload > Download > Bank & statutory > Edit & Save
Once amendment is completed, go to Payroll > Settings > Company settings > Employee information bulk upload > Upload
1. Kindly check the total employee contribution rate before proceed with the payroll processing for July 2022 to ensure zero error on the statutory contribution.
2. For employees who previously had an additional EPF rate on top of the 9% contribution, Swingvy will zeroise the amount and it will appear as 11% starting July 2022. Please check & update the additional rate should the employee decide to contribute more than 11%.