Malaysia EPF (KWSP) Contribution Calculator (Employer & Employee)

About the Malaysia EPF (KWSP) Contribution Calculator (Employer & Employee)

Work out the EPF (KWSP) on a Malaysian employee’s wages the way an employer must pay it: the employee’s share taken from the pay, the employer’s share on top, and the total paid to KWSP for the month. The calculator follows the Third Schedule of the EPF Act — its wage bands, its rates for each citizenship and age, and its rounding — so RM3,250 gives RM359 and RM424, as in KWSP’s own example, not the RM357.50 and RM422.50 a plain percentage would.

It covers Malaysians, permanent residents, non-Malaysians who joined EPF before 1 August 1998 and non-Malaysian employees with a work pass (2% each), the change at 60 and the end at 75, a bonus that lifts a month above RM5,000, wages above RM20,000, and i-Topup above the statutory rates. Paste a whole payroll to get every employee’s shares and the total to pay, or project one employee’s balance with KWSP’s own dividend method. Nothing you type leaves your browser. Without a pass the page gives a free preview of your own result: the part, the wage band, the rates and the checks, with every amount hidden until you unlock it with a Premium pass.

EPF rates by citizenship and age

The Third Schedule of the EPF Act sets the shares for each month’s wages (KWSP):

• Below 60 — Malaysians, permanent residents and non-Malaysians who joined before 1 August 1998 (Part A): employee 11%; employer 13% on wages of RM5,000 or less, 12% above.
• 60 and over — Malaysians (Part E): employee 0%; employer 4%.
• 60 and over — permanent residents and non-Malaysians who joined before 1 August 1998 (Part C): employee 5.5%; employer 6.5% up to RM5,000, 6% above.
• Non-Malaysian employees with a valid work pass (Part F): employee 2% and employer 2%, below 60 and over.

The youngest age to register and contribute is 14 and the last is below 75. Contributions for one month’s wages are paid as the next month’s contribution, by the 15th, in whole ringgit.

Why the shares are not exact percentages

KWSP does not allow employers to multiply the wages by the rate, except above RM20,000 a month. Up to RM5,000 the schedule has RM20 bands and up to RM20,000 RM100 bands; each share is worked out on the top of the band and rounded up to the next ringgit. So RM3,250 falls in the band to RM3,260 and gives RM359 and RM424, where 11% and 13% of RM3,250 would give RM357.50 and RM422.50 — KWSP’s own example of the wrong approach (KWSP).

Above RM20,000 the exact percentages apply and the total, cents included, is rounded up to the next ringgit. KWSP’s example shows the employee’s share with its cents; the calculator adds the rounding to the employer’s share. Wages of RM10 or less carry no EPF. The calculator checks every row of Parts A, C and E of KWSP’s published schedule.

What counts as wages, and bonuses

EPF is charged on salary and wages, bonuses, allowances, commission, incentives, arrears of wages, pay for unused annual or medical leave, and paid maternity and study leave. It is not charged on overtime, service charges, gratuities, retirement, retrenchment, lay-off or termination benefits, pay in lieu of notice or travelling allowances (KWSP’s list).

A bonus is added to the month it is paid in. When it lifts the month above RM5,000 for an employee normally paid RM5,000 or less, the employer’s share stays at 13% (6.5% at 60 and over) — worked out on the month’s wages, with the total rounded up to the ringgit — instead of falling to 12% (note to Parts A and C).

Non-Malaysian employees

Non-Malaysian employees with a valid passport and work pass, employed under a contract of service by an employer registered in Malaysia and paid in money, contribute until 75; permanent residents pay the Malaysian rates instead. Part F is 2% from the employee and 2% from the employer, worked out on the wages directly (KWSP). KWSP’s guide for non-Malaysian employees rounds each share up to the next ringgit (RM1,751 gives RM36 and RM36); its contribution page adds the two exact shares before rounding (RM6,710 gives RM269 in all instead of RM270). The calculator shows the first and names the second when they differ.

For EPF the contributions of non-Malaysian employees are worked out on at least the minimum wage — RM1,700 a month in KWSP’s i-Akaun check (guide). An employee who wants to keep paying 11% applies with Form KWSP 17A (AHL), which the calculator handles as i-Topup. KWSP exempts employers of domestic servants from mandatory contributions, though both may choose to contribute.

i-Topup: paying more than the statutory rate

The employee, the employer or both may contribute above the Third Schedule’s rates; the last rate chosen applies until it is cancelled (KWSP). The employee applies with Form KWSP 17A (AHL) or in the KWSP i-Akaun app; the employer needs no form, and both are entered in i-Akaun (Employer).

KWSP’s examples work the share that carries the higher rate as an exact percentage of the wages — 18% of RM1,000 is RM180 — take the other share from the Third Schedule, and round the total up to the next ringgit: RM6,250 with the employer at 17% gives RM693 + RM1,062.50 = RM1,756. The calculator does the same. One of KWSP’s eight examples uses the exact 12% (RM750) for the employer instead of the schedule’s RM756, so a payroll system may differ from it by a few ringgit.

Below the minimum wage

The EPF Act requires that the contributions for an employee covered by the Minimum Wages Order are not less than those on the minimum wage for the month (section 43(1A), quoted on KWSP’s i-Topup page). The minimum wage is RM1,700 a month, which KWSP’s i-Akaun (Employer) checks for non-Malaysian employees (guide); on it the contributions are RM221 and RM187 for a Malaysian below 60 and RM34 each for a non-Malaysian. Below that the calculator shows the contributions on the minimum wage beside the ones on the wages you entered. Part-time employees and part months have a lower minimum for the month.

How the projection works

KWSP works out the yearly dividend on the Modified Aggregate Daily Balance: the balance earns for every day of the year, and each month’s contribution earns from the last day of the month it is credited in. With KWSP’s own example — RM7,500 in Akaun Persaraan and RM750 a month at 5.50% — that gives RM641.80, which the projection reproduces exactly (KWSP). For members below 55 each month’s contribution is split 75% to Akaun Persaraan, 15% to Akaun Sejahtera and 10% to Akaun Fleksibel.

The projection keeps today’s rules, works out the Third Schedule again every year for the new wages and age, pays no bonus and takes no withdrawals. Dividends are declared after each year ends and are not guaranteed; Simpanan Konvensional’s is at least 2.50%.

Limitations

• For employees under a contract of service in the private sector. Pensionable public servants, the self-employed (who contribute voluntarily) and domestic servants (whose employers KWSP exempts from mandatory contributions) have other rules.
• The rates change once the employee reaches 60: the calculator uses the age you enter, so check the first month at the new rate with KWSP.
• Late payment charges and dividends on late contributions are not worked out.
• For non-Malaysian employees KWSP publishes two ways of rounding the 2% shares; the result can differ by RM1 (both are shown).
• i-Topup follows KWSP’s examples; a payroll system can differ from one of them by a few ringgit.
• The projection is an illustration at a fixed dividend and pay rise, without bonuses or withdrawals; it is not a forecast.

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