The EPF contribution can be set to calculate 2% for both employee and employer based on the total monthly wages. Follow the steps below to set it up and understand how the calculation works.
How the Calculation Works
The EPF amount is calculated directly from the total wages as stated in the 3rd Schedule (Part F) of the EPF table.
Example:
If the monthly wages are MYR 1,751.00,
EPF = 1,751.00 × 2% = 35.02,
which will be rounded to MYR 36.00.
The calculation is based on the gross pay for the month, which includes:
Basic Pay
Bonus
Commission
Allowances
Set Up 2% EPF Contribution in the System
Go to Settings, Statutory / Tax Tables Maintenance Setting, EPF Table.
Select a table (e.g. Table 5).
Enter 2.00% for both Employee and Employer contribution rates.
Set the Calculation Method (Cal. Method) to CA.
Click Save to apply the changes.