Employees and employers must know the EPF calculation method!
The Employees Provident Fund (EPF) is an important guarantee for the future for working professionals. Many job seekers avoid companies that do not provide EPF when looking for jobs. Therefore, the EPF is equally important to both employees and employers. There are many details that both parties should be clear about.
About Malaysia Provident Fund?
The provident fund system in Malaysia is manag by the Australia Phone Number List provident fund organization, the Employees Provident Fund (EPF). EPF saves a certain amount of funds for employees across Malaysia to meet their financial needs when they retire. The provident fund system in Malaysia is mandatory and all employees must participate.
Employer Provident Fund vs Employee Provident Fund
Employer’s provident fund and employee’s provident fund refer to the funds invest by employers and employees respectively into the provident fund accounts in the provident fund plan.
Normally, both employers and employees are requir to contribute a certain percentage of their salary to a provident fund account, with the employer’s contribution generally being higher than the employee’s. The employer’s contribution is usually provid as part of employee benefits to help employees increase their provident fund savings level.
In different countries and regions, the proportion of employers UAE Phone Number employees’ contributions to provident fund accounts may vary, depending on the country’s laws, regulations and policies. In general, the purpose of provident fund plans is to help employees accumulate funds to meet their retirement and other social security needs.
Malaysia EPF Calculation Method
The Malaysian EPF calculation method is bas on the employee’s monthly salary and the monthly contribution from the employer.
