Tuesday, 28 February 2017

Payments applicable and Payments Exempted to EPF Contribution in Malaysia






Payments applicable to EPF Contribution in Malaysia
All monitory payments which are for salary are applicable for EPF contribution in Malaysia.
It includes:          
  • Salary of employees
  • Unused annual or medical leave encashment
  • Bonus
  • Almost all kinds of allowances
  • Incentives and Commissions
  • Wages Arrears
  • Maternity Leave Wages
  • Study Leave Wages
  • Half day leave wages
  • Other contractual payments

Exempted Payments from EPF Contribution

These payments are not considered “wages” by the EPF Malaysia:
  • Service charges like tips, etc.
  • OT Payments
  • Gratuity
  • Benefits at the time of retirement
  • Benefits when terminated
  • Allowances for travel like petrol, parking, etc.
  • Fee of Director
These all parameters are now included with most HR and Payroll Software available in the market. friendHRM is one of the best #freeHRandPayrollsoftwareforMalaysia, India and USA which includes all the required features for payroll calculation. Subscribe to a free trial of #friendHRM at https://www.friendhrm.com and switch to the smart #HRmanagementsystem.

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