EPF contribution calculator Malaysia 2026

EPF rates from October 2025 wages

What counts as wages

• Basic salary, overtime, commission, bonuses, allowances and payment for unused leave count.
• Service charge, gratuity and retirement benefits, travel allowance, and payments in kind generally don’t.
• Pay the contribution to KWSP by the 15th of the following month.
• Employees can choose to contribute more than 11%; the employer’s share stays at the statutory rate unless the contract says more.

Worked examples (employee under 60)

Figures below use the same rules as the calculator: the contribution is worked out on the top of the wage band and rounded up to the next ringgit. They are illustrations, not a payroll run.

Take RM3,010 as an example. It falls in the RM3,000.01 to RM3,020 band, so the contribution is worked out on RM3,020: 11% is 332.20 and 13% is 392.60, each rounded up to RM333.00 and RM393.00. That is why a calculator that simply multiplies the wage by 11% can be a ringgit or two out. For an employee with a non-Malaysian work pass on the same RM3,500 wage, the share is 2% each way: RM70.00 from the employee and RM70.00 from the employer.

Mistakes managers make with EPF

• Leaving out variable pay. Commission, overtime and bonuses count as wages, so a month with a big payout has a bigger contribution. Work it out for the month the money is paid, not on basic salary alone.
• Using the same rate after a birthday. The rates change at age 60, and the split between employee and employer changes with it. Put the 60th birthday in the people calendar a few months ahead.
• Forgetting the RM5,000 line. The employer share drops from 13% to 12% above RM5,000, so a pay rise can move someone across it. The employee share stays at 11%.
• Missing the 15th. Contributions for a month are due by the 15th of the next month. Set a recurring reminder for whoever runs payroll, and a backup for when they are on leave.
• Not telling new hires what comes off their pay. The employee share is deducted from wages, so the offer letter and first payslip should show it clearly. It avoids a lot of questions in the first month.

Questions managers ask about EPF

Does the employer share come out of the employee’s pay?

No. The employee share (11% for most people) is deducted from their wages. The employer share is paid by the company on top of the wages. Both go to KWSP together.

What if someone earns more than RM20,000 a month?

Up to RM20,000 the contribution table works in bands. Above that, the exact percentage applies and is rounded up to the next ringgit, which is what the calculator does.

Do part-time or probation staff count?

Probation staff are employees too, so contributions normally start with their first wages. For part-time and other special cases, check the KWSP page linked below or ask your payroll provider before you rely on a general rule.

How often do the rates change?

Rarely, but they do, as the rule for non-Malaysian employees did from October 2025. This page was last checked in October 2026; the official KWSP page is the final word.

Related

• SOCSO and EIS calculator: the other two monthly contributions.
• Overtime calculator: overtime is part of EPF wages.