What payments are liable for EPF contribution? WagesAll remuneration in the form of money paid to an employee under a contract of service or apprenticeship whether it was agreed to be paid monthly, weekly, daily or otherwise is regarded as wages. This includes bonus, commission or any allowance which an employer is required to pay irrespective of whether such a payment is paid under a contract of service or apprenticeship or others.
Payment Liable for EPF Contribution
In general, all payments which are meant to be wages are accountable in your monthly contribution amount calculation. These include:
- Salary
- Payment for unutilised annual or medical leave
- Bonus
- Allowance
- Commission
- Incentive
- Arrears of wages
- Wages for maternity leave
- Wages for study leave
- Wages for half day leave
- Other payments under services contract or otherwise
Payments Not Liable For EPF Contribution
Among the payments that are exempted from EPF contribution:
- Service charge
- Overtime
- Reward
- Retirement benefit
- Retrenchment, temporary lay-off or termination benefits
- Any traveling allowance or the value of any travel concession
- Payment in lieu of notice of termination of service
- Director's fee
Source: Payments Liable & Not Liable for EPF Contributions
The information below shall only be used for reference purpose. iWoWSoft has been trying its best to keep the information up to date and align with the KWSP website(www.kwsp.gov.my). However, iWoWSoft is not liable for any misleading and inaccurate information provided. Users shall always confirm with KWSP to ensure they are in compliance to the statutory requirement.