Which payment is subjected to EPF

In Swingvy, all the default payroll items have been set to either be subjected to EPF or not based on the compliance stated by the EPF body. In general, all monetary payments that are meant to be wages are subject to EPF contribution. These include:

Payments Subject to EPF Contribution

Payments which are subject to EPF contribution include:

• Salary
• Bonus
• Allowance
  • Broadband/Telephone/Mobile
  • Child care allowance
  • Loan interest
  • Meal allowance
  • Parking fees
  • Service excellence/Productivity award
• Commission
• Incentives
• Arrears of salaries
• Paid half day leave

• Payment in respect of un-utilised annual or medical leave (leave balance)

• Paid maternity leave

• Paid study leave

• Other contractual payments or otherwise

Payments Exempted From EPF Contribution

Payments which are not liable for EPF contribution are:

• Service charges (tips, etc)
• Overtime payment
• Gratuity (payment to employee payable at the end of a service period or upon voluntary resignation)
• Retirement benefits
• Retrenchment
• Termination benefits
• Temporary lay-off & termination benefits
• Payment in lieu of notice of termination of service / employment
• Petrol/Travel allowance or the value of any travelling concession
• Director's fee
• Gifts (includes Cash Payments for holidays like Hari Raya, Christmas, etc.)
• Reimbursement
• VSS
• Severance

The above list is not exhaustive.

Reference: Employer responsibilities