Recap on statutory rate for employee's share of contribution to be reduced to 9% for 2021
On 28 November 2020, EPF announced that the employee’s share of the statutory contribution rate will be reduced from 11 per cent to nine (9) per cent.
Members who wish to maintain the contribution rate for employees at 11% may fill in the Borang KWSP 17A (Khas 2021) form.
The completed form must then be submitted to their respective employers for online registration via i-Akaun (Employer).
The online registration via i-Akaun (Employer) for Borang KWSP 17A (Khas 2021) form is now open for submission.
Employers can start submitting their employees' applications via i-Akaun (Employer) in order to maintain EPF 11% contribution rate for employees from now onwards although there was no specific deadline given by KWSP.
According to a statement from Employees Provident Fund (EPF), all submissions are to be done through the i-Akaun (employer) website only, to ensure physical distancing. Employers can only be at (EPF) branches for the purpose of employer registration with an appointment made via Janji Temu Online (www.kwsp.gov.my/janjitemu).
However, many HR netizens on Facebook are not happy with the application process which they find it tedious and some even faced technical difficulties when submitting the form through i-Akaun.
"I think i can't hide this anymore, why on earth those who want to maintain 11% EPF rate MUST submit application? #hellokennotunderstand," said a Facebook user.
The i-Akaun experience was not pleasant to some employers when submitting the application form due to technical errors from the portal. As a result, this creates more frustration and confusion.
HR netizens were also complaining about KWSP requiring a physical signature from their employees when submitting the application form.
[NEW UPDATE]
Good news is employee signature is no longer required as long as employees inform their employers via email, whatsapp, sms and etc.
The application form submission to retain 11% is indeed troublesome and tedious but we still need to follow KWSP procedures. Fret not, KWSP has put up a straightforward guide to help employers navigate their form submission at ease.
Step 1: Login to your employer i-Akaun
Step 2: Click VOLUNTARY EXCESS (VE) which you'll see it on the left part of the portal
Step 3: Choose upload file and you will see a download for csv.file (to convert excel to csv.file, kindly refer to this quick EPF guide here)
Step 4: Do save the filename as "VEKHAS2021" and proceed to submit in the portal.
Step 5: Then check your application status by returning to your first page of VE.
Here's some useful tips if you're facing problems below during your file submission:
- Insufficient character length (EPF No): Add '0' in front of your EPF No = '0xxxxxx
- Line 17 EPF number/ name/ MyKad is empty: Just select the rows and right-click delete
Important notes:
- The new rates will be in effect for an entire year, affecting wages for the months of January 2021 (February 2021’s contribution) up to December 2021 (January 2022’s contribution).
- The new statutory contribution rate for employees applies only to members below 60 years old who are liable for contribution.
- For members aged 60 years old and above, the statutory contribution rate for employees remains unchanged.
For Swingvy users: The 9% EPF rate will be automatically updated in your payroll so there is no updating required from your end. However, for your employees who choose to maintain EPF rate at 11%, you may refer to this guide on how to set it up in Swingvy's payroll within few clicks. Read here: http://bit.ly/EPF11Swingvy
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