What is KWSP?
If you're an employer looking to ease the process of salary and payroll for your staff, contact us to set up one-click payroll services with our team of highly qualified company secretaries.
If you're an employer (or have been an employee), you'll likely be familiar with the Employers' Provident Fund, a compulsory savings and retirement plan set up by the Federal Government of Malaysia, similar to a 401k or Social Security. Best known as Kumpulan Wang Simpanan Pekerja (KWSP) in Malaysia, it is regulated by the EPF Act 1991 (Act 452).
Who Needs to Pay KWSP?
Every company in Malaysia is required to contribute to this fund on a monthly basis. New employers must register themselves with the KWSP board within 7 days of being liable to contribute.
When Do You Need to Pay KWSP?
Once liable to contribute, an employer must make payment to KWSP by the 15th of the following month. Late payments can incur a penalty of dividend + interest.
How Much KWSP Do You Need to Pay?
13% for wages below RM5,000
12% for wages above RM5,000
How Do I Pay KWSP?
Employers can choose to pay their contribution in the following ways:
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