This is the rules reference. For how it works in the software, see Statutory Contributions in the reference, or the how-to Run payroll.
The Employees Provident Fund (EPF, or KWSP) is Malaysia’s compulsory retirement savings. Both employer and employee contribute a percentage of wages each month; the exact rate depends on the employee’s wage, age and citizenship.
Standard rates (Malaysian and PR, under 60)
| Monthly wage | Employee share | Employer share |
|---|---|---|
| RM5,000 and below | 11% | 13% |
| Above RM5,000 | 11% | 12% |
Contributions are read from a statutory wage-band schedule (rounded into bands), not a flat multiplication, so the ringgit amount steps up in small increments. Cloudby applies the official schedule for you.
Age and citizenship change the rate
Malaysia’s schedule is split into parts. Cloudby resolves the right part automatically from the employee’s date of birth and a citizen class flag on the assignment:
| Who | How it is treated |
|---|---|
| Malaysian / PR, under 60 | Standard rates above (schedule Part A) |
| Malaysian / PR, 60 and over | Reduced: employer 4%, employee 0% (Part E) |
| Non-Malaysian (registered after Aug 1998) | Employer a flat RM5 per month; employee 11% (Parts B / D) |
The age-60 change takes effect from the month the member turns 60. Non-citizens who opted in before August 1998 follow the standard Malaysian schedule.
Voluntary top-ups
An employer or employee may elect to contribute above the statutory rate. In Cloudby this is an override percentage on the employee’s EPF assignment; leave it blank to use the statutory default.
Related
- Reference: Statutory Contributions in Cloudby
- Reference: Deadlines & annual filing
- How-To: Generate statutory forms