The Employees Provident Fund (EPF) takes note of the Government’s decision on the reduced minimum statutory contribution rate for employees, from 11 percent to seven (7) percent as announced today.

The new rate will be effective starting 1 April 2020 until the end of the year and affects members below age 60. For those aged 60 and above, the employees’ share of the contribution rate will remain at zero percent.

Employees may choose to maintain the current contribution rate of 11 percent by completing

Notis Pilihan Mencarum Melebihi Kadar Berkanun KWSP 17A (Khas) which is available on epf.gov.my. This notice must be presented to employers to be submitted to the EPF.

The move to reduce the statutory contribution rate is part of the Government’s economic stimulus package intended to cushion the blow from the economic fallout following the global COVID-19 outbreak.

The minimum contribution rate under the Employees Provident Fund (EPF) will be cut from 11 percent to 7 percent from April 1 until December 31 this year with the aim of potentially unlocking up to RM10 billion worth of spending by Malaysians to help drive the economy that has been hit by the global Covid-19 virus outbreak.

The Government encourages employers to further invest in raising the productivity of human capital during this economic slowdown period.

Towards this, the Government will provide a double deduction on expenses incurred on approved tourism-related training. The Government will also provide up to RM100 million on a matching grant basis to HRDF to fund an additional 40,000 employees from the tourism and other affected sectors.

The Government will also provide RM50 million to subsidize short courses in digital skills and highly skilled courses. This incentive is expected to benefit 100,000 Malaysians.

The Malaysian workers retrenched can rely on the Employment Insurance System (EIS) with a current fund of RM1.1 billion. Furthermore, EIS will increase the claimable training cost from RM4,000 to RM6,000 for the affected sectors. A daily training allowance of RM30 per day will also be provided to trainees under EIS.

EIS will increase the claimable training cost from RM4,000 to RM6,000 for the affected

The official birthday of the Yang di-Pertuan Agong this year has been moved to June 8 and from next year onwards, it will be on the first Monday of June.

The initial date for the celebration was June 6, said Chief Secretary to the Government Datuk Seri Mohd Zuki Ali.

“The government has agreed that starting 2021 until the end of the reign of Yang di-Pertuan Agong Al-Sultan Abdullah Ri’ayatuddin Al-Mustafa Billah Shah, the official birthday will fall on the first Monday of June,” he said in a statement on Wednesday (March 4).

 

For further inquiries kindly visit LHDN website www.hasil.gov.my or contact Hasil Care Line LHDNM at 1-800-88-5436 or 603-77136666 (Overseas).

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