EPF Contribution Rates 2026: Employee and Employer Table Explained

Quick Answer: In 2026, Malaysian employees under 60 contribute 11% of their wages to EPF. Employers add 13% on wages up to RM5,000 and 12% above RM5,000. On a RM3,000 salary that is RM330 from you and RM390 from your employer, RM720 a month in total. Different rates apply from age 60 and for non-Malaysian workers.

Key fact	Rate in 2026 (KWSP Third Schedule)
Employee share, under 60	11%
Employer share, wages up to RM5,000	13%
Employer share, wages above RM5,000	12%
Citizen aged 60 and above	Employee 0%, employer 4%
Permanent resident aged 60 and above	Employee 5.5%, employer 6.5% (up to RM5,000) or 6%
Non-Malaysian workers	2% each (from 1 October 2025)
Example: RM3,000 salary, under 60	RM330 employee, RM390 employer, RM720 total

Checked against the KWSP Third Schedule contribution table (effective from 1 October 2025) on 1 October 2026. The same rules power the SuperJobs salary calculator.

---

What are the EPF contribution rates in 2026?

For an employee under 60, 11% of wages comes from you and 13% from your employer if your wages are RM5,000 or less, or 12% if they are above RM5,000.

Group	Employee share	Employer share
Malaysian or PR, under 60, wages up to RM5,000	11%	13%
Malaysian or PR, under 60, wages above RM5,000	11%	12%
Malaysian citizen, 60 and above	0%	4%
Permanent resident, 60 and above, up to RM5,000	5.5%	6.5%
Permanent resident, 60 and above, above RM5,000	5.5%	6%
Non-Malaysian worker	2%	2%

From the Third Schedule of the EPF Act 1991 as published by KWSP: Part A (under 60), Part B (permanent residents 60+), Part D (citizens 60+) and Part F (non-Malaysians, from 1 October 2025).

These are the minimums. You may choose to contribute more, and some employers contribute above 13% as a benefit.

How is the EPF amount calculated?

KWSP does not simply multiply your wages by 11%. The Third Schedule works in wage bands:

• Wages up to RM5,000 fall into RM20 bands.
• Wages from RM5,000 to RM20,000 fall into RM100 bands.
• Each share is the rate applied to the top of your band, rounded up to the next ringgit.
• Above RM20,000, the rate is applied to your actual wages.

That is why a salary of RM3,250 gives an employee contribution of RM359 rather than RM357.50: the band runs to RM3,260, and 11% of RM3,260 is RM358.60, rounded up to RM359.

EPF contribution table 2026: common salaries

Monthly wages	Employee (11%)	Employer	Total EPF a month
RM1,700 (minimum wage)	RM187	RM221	RM408
RM2,500	RM275	RM325	RM600
RM3,000	RM330	RM390	RM720
RM3,250	RM359	RM424	RM783
RM4,000	RM440	RM520	RM960
RM5,000	RM550	RM650	RM1,200
RM5,010	RM561	RM612	RM1,173
RM6,000	RM660	RM720	RM1,380
RM8,000	RM880	RM960	RM1,840
RM10,000	RM1,100	RM1,200	RM2,300
RM20,000	RM2,200	RM2,400	RM4,600
RM25,000	RM2,750	RM3,000	RM5,750

For Malaysian employees under 60 (Part A). Calculated with the Third Schedule band rules; checked 1 October 2026.

Notice the step at RM5,000. At RM5,010, your wages move into the RM100 band ending at RM5,100 and your employer's rate drops from 13% to 12%. Your own contribution rises to RM561, but your employer's falls to RM612, so total EPF is RM27 lower than at RM5,000. If you are negotiating a salary just above RM5,000, it is worth knowing.

Which payments count for EPF?

EPF is charged on "wages" as defined in the EPF Act 1991, which is wider than basic salary.

Liable for EPF	Not liable for EPF
Basic salary	Overtime payments
Bonus	Service charge
Commission	Gratuity
Most allowances (for example housing, shift or cost-of-living)	Retirement benefit
Incentives	Retrenchment, lay-off or termination benefits
Wages paid during leave, including maternity leave	Travelling allowance or travel concessions
Arrears of wages

Based on KWSP's guidance on payments liable for contribution; checked 1 October 2026.

So a bonus attracts EPF in the month it is paid, but overtime does not. If you think an allowance has been wrongly excluded, ask your HR team which category it falls under.

Who has to contribute to EPF?

EPF is compulsory for every employee working under a contract of service in Malaysia. Your contract type does not matter: permanent, contract, probation and part-time staff are all covered, as long as wages are paid. Both shares are compulsory. You cannot agree with your employer to skip EPF in exchange for a higher salary, and your employer cannot deduct its own share from your pay.

Non-Malaysian workers were brought into mandatory EPF from 1 October 2025, at 2% from the worker and 2% from the employer. Before that date, contributions for most foreign workers were voluntary.

When must your employer pay EPF?

Your employer must pay both shares to KWSP by the 15th of the following month. Contributions on your January wages, for example, are due by 15 February. Payments made after the deadline attract late payment charges, which go to your account.

Check i-Akaun every month or two. If a month is missing, raise it with HR or payroll first, since the cause is often an error in your name or identity card number. If the contributions still do not appear, you can lodge a complaint with KWSP, which can take enforcement action against the employer.

Where does your EPF money go?

Since 11 May 2024, every contribution for members under 55 is split into three accounts:

Account	Share	Purpose
Akaun Persaraan	75%	Income in retirement
Akaun Sejahtera	15%	Housing, education, health and other approved needs
Akaun Fleksibel	10%	Withdrawals at any time

On a RM3,000 salary, the RM720 monthly contribution splits into RM540 for Akaun Persaraan, RM108 for Akaun Sejahtera and RM72 for Akaun Fleksibel. You can check every contribution in KWSP's i-Akaun. Our guide to EPF and PRS retirement planning explains how to grow these balances.

Worked example: EPF on a first job

Hakim is a composite case, not a real person. He joins a logistics company in Shah Alam as an operations executive on RM3,250 a month. He is a Malaysian citizen aged 24.

Item	Amount
Monthly wages	RM3,250
His EPF (11%, band to RM3,260)	RM359
Employer EPF (13%)	RM424
Total into his EPF each month	RM783
Of which Akaun Persaraan (75%)	RM587.25
Of which Akaun Sejahtera (15%)	RM117.45
Of which Akaun Fleksibel (10%)	RM78.30
Total in his first year (12 months)	RM9,396

After his first year, before any dividend, Hakim has RM9,396 in EPF, of which only RM4,308 came from his own salary. His pay slip shows the RM359 deduction; the employer's RM424 is on top of his salary. Our guide to understanding your pay slip shows where each figure appears, and the salary calculator works out EPF, SOCSO, EIS and tax for any salary.

How does EPF affect your income tax?

Your EPF contributions qualify for tax relief. The SuperJobs salary calculator applies relief of up to RM4,000 a year for EPF when estimating your monthly tax deduction (PCB). For many fresh graduates, that relief together with the RM9,000 individual relief and the RM400 rebate brings PCB to zero. Our guide to filing income tax for the first time explains how to claim it on your return.

What mistakes do employees make with EPF?

• Assuming EPF is a flat 11% of salary. The bands and rounding mean the exact amount differs slightly.
• Forgetting bonuses attract EPF. Your EPF deduction will be higher in a bonus month.
• Thinking overtime counts. It does not, so a high-overtime month does not raise your EPF.
• Not checking i-Akaun. Missing contributions are easier to sort out quickly.
• Ignoring the RM5,000 step. Just above RM5,000, your employer's rate drops to 12%.

Where to go next

• See every deduction explained in understanding your pay slip.
• Plan your savings with EPF and PRS retirement planning.
• Claim your EPF relief in the first income tax e-Filing guide.
• Compare pay for your role on Salary Insights, or work out your take-home pay in the salary calculator.

Sources

All checked 1 October 2026.

• Employees Provident Fund Act 1991 (Act 452), Third Schedule, contribution rates effective from 1 October 2025 (Parts A, B, D and F), as published by KWSP.
• KWSP, restructuring of members' accounts into Akaun Persaraan, Akaun Sejahtera and Akaun Fleksibel, effective 11 May 2024.
• KWSP employer guidance on contribution due dates and late payment charges.
• KWSP guidance on payments liable for EPF contribution.
• LHDN individual tax reliefs and rebate used in the PCB calculation.