Scenario 

Quick and easy way to setup Employee EPF Rate before generate payroll in the system. Learn how you can create multiple EPF Groups for different employees.

Solution 

 

When user starts to use the payroll system, it is essential for user to setup Employee EPF Rate before generate payroll. 

 

To start, please make sure that the following EPF settings has been set correctly.
1. Create an EPF Group

Go to Maintenance > EPF. 

By default, system has populated a list of EPF Group that is commonly use by the user. For example, Statutory group with 11% employee rate and 13% employer rate; or Statutory 9% with 9% employee rate and 13% employer rate. 

However, you may still customize the EPF rate for your employees by creating new EPF Groups. You may refer to the following video on how to setup an EPF Group:

https://www.youtube.com/watch?v=gT3HEEsC5WU&list=PLCyuULJlHqwQ9Mokx9URI66XQFHdoy5F1&index=16

 

Source: https://www.kwsp.gov.my/employer/contribution/all-about-your-responsibility

All EPF groups, as stated by KWSP, will automatically calculate the EPF for employee with such conditions:

  1. Malaysian Employee with Basic Salary more than RM 5000, employer rate will be automatically calculated as 12%
  2. Malaysian Employee that is more than 60 years old, system will automatically calculate their EPF rate as:
    1. Employee Rate: 0%
    2. Employer Rate: 4%

 

If you are customizing any EPF groups and do not want to follow the above rules, please remember to turn on the Follow the Rate on Screen button.

 

2. Assigned the employee with an EPF group

Go to Employee > Employee. Select the employee's profile, 

Go to Payroll Info > EPF. Click on Edit. Select an EPF group for your employee. Click Save to update.

 

3. Check marked Default Pay EPF setting

At the same screen as above, make sure that the Default Pay EPF is check marked as well.

After you have Setup Employee EPF Rate before Generate Payroll, you may now proceed to generate payroll for your employees.