With reference to the Government’s announcement on the 2020 Economic Stimulus Package on 27 February 2020, the employee’s share of the Employees Provident Fund (EPF) statutory contribution rate will be reduced from 11 per cent to seven (7) per cent.
1. The new statutory contribution rate for employees will affect April 2020’s wage (May 2020’s contribution) up to December 2020’s wage (January 2021’s contribution) subject to the Third Schedule of the EPF Act 1991.
2. The new statutory contribution rate for employees applies to those below 60 years old who are liable for contribution. The statutory contribution rate for employees aged 60 years old and above however, remains unchanged.
Option to maintain employee contribution rate of 11 per cent
Members may choose to maintain the employee contribution rate at 11 per cent by completing Borang KWSP 17A (Khas 2020). This form must be submitted to the EPF via employers and will take effect from the following month. Download the form here: https://www.dropbox.com/s/r5im49mzxlcyk0z/Borang%20KWSP%2017A%20%28Khas%202020%29.pdf?dl=0
The minimum wages rates payable to an employee who works in a place of employment in any City Council or Municipal Council areas specified in the Schedule shall be as follows:
|Minimum wages rates|
|Number of working days in a week|
LIST OF CITY COUNCIL AREAS:
LIST OF MUNICIPAL COUNCIL AREAS:
For more information, refer to the Federal Government Gazette – Minimum Wages Order 2020
The government has decided that the minimum wage increase to RM1,200 a month in major cities under the administration of 57 City Councils and Municipal Councils.
The minimum wage for other major urban areas remains at RM1,100 per month.
MAJOR CITIES LISTING
For more information, refer to the Kenyataan Media Pelaksanaan Gaji Minimum RM1,200 Sebulan di Bandar-Bandar Utama
The Minimum Wages Order (Amendment) 2018 gazette issued on November 28, 2018 will be effective on January 1, 2019 with the following amendments:
1.The minimum wages rates, standardised across the country, are as follows:
|Minimum Wages Rate|
|RM1,100||6 working days a week||RM42.31||RM5.29|
|5 working days a week||RM50.77|
|4 working days a week||RM63.46|
2. For employees who are not paid basic wages but based on piece rate, tonnage, task, trip or commission, their monthly wage payable shall not be less than RM1,100.
Please be informed that all employers will need to use Portal Assist Perkeso/internet banking for statutory payment and employee updates for SOCSO and EIS with effective from 1 January 2019.
Click Here to download the official circular for your reference.