1. What is EPF Deduction?

The Employees Provident Fund (EPF) is a mandatory savings scheme for employees in Malaysia. Both employers and employees contribute a percentage of the employee's salary to this fund, which serves as retirement savings.

2. How Does the Calculator Work?

The calculator uses the simple formula:

Where:

• \( Salary \) — Employee's gross salary amount
• \( EPF\ Percentage \) — The current EPF contribution rate (typically 11% for employees)

Explanation: The calculation multiplies the salary by the EPF percentage (converted to decimal) to determine the deduction amount.

3. Importance of EPF Calculation

Details: Accurate EPF calculation ensures proper retirement savings, compliance with legal requirements, and correct salary deductions. It helps both employees and employers plan their finances.

4. Using the Calculator

Tips: Enter the gross salary amount and the applicable EPF percentage (default is 11%). The calculator will show the EPF deduction amount from the salary.

5. Frequently Asked Questions (FAQ)

Q1: What is the standard EPF percentage in Malaysia?
A: For employees, the standard contribution rate is 11% of monthly wages. Employers contribute 12-13% depending on salary amount.

Q2: Is there a maximum salary limit for EPF contributions?
A: No, there is no maximum salary limit for EPF contributions in Malaysia.

Q3: Can I contribute more than the statutory rate?
A: Yes, employees can voluntarily contribute more than the statutory 11% through additional voluntary contributions (AVC).

Q4: When are EPF deductions made?
A: EPF deductions are made monthly, together with salary payments.

Q5: How can I check my EPF balance?
A: You can check your EPF balance through the EPF website, mobile app, or by visiting any EPF branch.