EPF contribution rates in Malaysia (2026)
EPF is the largest statutory line on a Malaysian payslip and the one most often calculated wrongly, because the published schedule does not apply a flat percentage to the exact wage. Here are the 2026 rates, the rules that change them, and the rounding mechanic behind the numbers.
Figures verified June 2026 against KWSP, PERKESO, LHDN and HRD Corp guidance. General information, not tax or legal advice.
Contribution rates at a glance
The Employees Provident Fund (KWSP) rates below are set by the EPF Act 1991 Third Schedule. They are unchanged for 2026: Budget 2026 altered withdrawal and voluntary schemes, not the contribution rates.
| Member | Employee | Employer |
|---|---|---|
| Citizen or PR, under 60, wages ≤ RM5,000 | 11% | 13% |
| Citizen or PR, under 60, wages > RM5,000 | 11% | 12% |
| Citizen, 60 and over | 0% | 4% |
| PR, 60 and over, wages ≤ RM5,000 | 5.5% | 6.5% |
| PR, 60 and over, wages > RM5,000 | 5.5% | 6% |
| Non-citizen, from 1 Oct 2025 | 2% | 2% |
There is no wage ceiling on EPF. Contributions keep rising with pay, which is the main structural difference from SOCSO and EIS, both of which stop at RM6,000 of monthly wages.
The RM5,000 employer threshold
The employee share is a flat 11% for every member under 60 regardless of salary. Only the employer share moves: 13% while monthly wages are RM5,000 or less, stepping down to 12% once wages exceed RM5,000.
Because it is a step and not a taper, the employer share can fall in ringgit terms as a salary crosses RM5,000. That is expected behaviour in the published schedule, not a calculation error.
Members aged 60 and over
Contributions do not stop at 60, but they change shape, and the treatment differs by citizenship.
- Malaysian citizens aged 60 and over contribute nothing. The employer continues at a flat 4%, regardless of wage level.
- Permanent residents aged 60 and over contribute 5.5%, with the employer at 6.5% up to RM5,000 of wages and 6% above it.
The age that matters is the member's age in the contribution month, so the switch happens on the birthday month rather than at the start of a tax year.
Non-citizen employees
This is the most recent change and the one payroll teams most often still have wrong. Under the EPF (Amendment) Act 2025, mandatory contributions for non-Malaysian citizen employees began on 1 October 2025 at 2% employee and 2% employer.
Before that date the employer paid a flat RM5 per month and the employee contributed only if they chose to. Any recalculation of a wage month before October 2025 has to use the old treatment.
A non-citizen who elected to contribute before 1 August 1998 is an exception: they follow the percentage-based scheme like a permanent resident rather than the Part F rules.
Why the figure is not a flat percentage
For wages up to RM20,000 a month, KWSP's Third Schedule does not multiply the rate by the exact wage. It groups wages into RM20 bands and publishes a pre-rounded ringgit figure for each band, derived from the band ceiling, with the employee and employer shares each rounded up independently.
A worked example
Take a citizen under 60 earning RM1,710 a month. The wage sits in the band ending at RM1,720, so the contribution is calculated on RM1,720, not RM1,710:
| Step | Employee (11%) | Employer (13%) |
|---|---|---|
| Band ceiling applied | RM 1,720.00 | RM 1,720.00 |
| Rate applied to the band ceiling | RM 189.20 | RM 223.60 |
| Rounded up to the next ringgit | RM 190.00 | RM 224.00 |
Above RM20,000 a month the mechanic changes: the exact percentage applies to the actual wage. This is why a spreadsheet built on a flat percentage will agree with KWSP for high earners and quietly disagree by a ringgit or two for everyone else, every month, for every employee.
Voluntary contributions
Members may contribute above the statutory rate, and employers may top up through i-Saraan style arrangements. A voluntary percentage is layered on top of the statutory share rather than replacing it, and it is rounded on the same basis.
Voluntary employee contributions still count toward the employee's EPF relief for PCB purposes, which is capped at RM4,000 a year. See the PCB calculation guide for how that cap is consumed.
Paying and reporting
- Contributions for a wage month are payable to KWSP by the 15th of the following month.
- Submission is made through KWSP's e-Caruman channel, which accepts a contribution file listing each member's EPF number, identity number, wages and the two shares.
- The employee share appears as a deduction on the payslip; the employer share does not reduce net pay but does form part of the employer's cost of employment.
Official sources
Frequently asked questions
- What is the EPF contribution rate in Malaysia for 2026?
- For members below 60, the employee contributes 11% and the employer contributes 13% where monthly wages are RM5,000 or less, or 12% where wages exceed RM5,000. Malaysian citizens aged 60 and over contribute 0% with a 4% employer share. These rates are unchanged from 2025.
- Do foreign workers have to contribute to EPF?
- Yes. Since 1 October 2025, non-citizen employees contribute under the EPF Third Schedule Part F at 2% employee and 2% employer. Before that date the employer paid a flat RM5 per month and the employee contributed only voluntarily.
- Is there a wage ceiling for EPF?
- No. Unlike SOCSO and EIS, EPF has no wage ceiling. For wages up to RM20,000 a month the Third Schedule bands apply; above RM20,000 the percentage is applied to the exact wage.
- Why does my EPF figure not equal 11% of my salary?
- For wages up to RM20,000 the KWSP Third Schedule does not apply a flat percentage to the exact wage. It groups wages into RM20 bands and publishes a pre-rounded ringgit amount per band, with the employee and employer shares each rounded up independently. A wage of RM1,710 is therefore calculated on the RM1,720 band ceiling.
- When is the EPF contribution due?
- Contributions for a wage month are payable to KWSP by the 15th of the following month.