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2.2 Withholding of social security

Commentary

2.2.1 Employee provident fund (EPF) | Malaysia

Malaysia

Social security contributions are due to:

  1. Ìý

    •ÌýÌýÌýÌý employee provident fund (EPF) for retirement savings (2.2.1)

  2. Ìý

    •ÌýÌýÌýÌý social security contributions for work injury and/or invalidity coverage (2.2.2)

  3. Ìý

    •ÌýÌýÌýÌý social security contributions for employment insurance (2.2.3)

Malaysia has no bilateral agreements for social security. An expatriate is not required to contribute to EPF but can elect to do so. All EPF savings can be withdrawn upon leaving Malaysia (2.2.1).

Expatriates are required to make social security contributions. Foreign workers are specifically covered for work injury (2.2.2).

2.2.1ÌýÌýÌýÌý Employee provident fund (EPF)

The employee provident fund (EPF) provides a mandatory retirement savings scheme to which both the employee and employer must contribute. A comprehensive website regarding employer obligations is maintained at KWSP. The governing legislation is the EPF Act 1991.

Domestic servants and those who are more than 75 years old are not required to contribute. See KWSP for full details of eligibility.

EPF and expatriates

An expatriate whose country of domicile is outside Malaysia is not required to make contributions

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Web page updated on 28 Aug 2024 11:56