Car Allowance Need To Contribute Epf

Rate of contributions the current rates are 11 for the employee and 12 for the employer but employers are advised to keep abreast with changes which may take place from time to time.

Car allowance need to contribute epf. If you are wonder can a owner to contribute epf and his spouse then look no further on the contribution list. Hi aries for any variable pay that you would not want to contribute for tax socso or epf just uncheck the relevant options in variable pay setup. The payments below are not considered wages and are not included in the calculations for monthly deductions. Access to internet banking makes epf contribution payments much easier now.

Epf members in the private and non pensionable public sectors contribute to their retirement savings through monthly salary deductions by their employers. All renumeration or wages stated below and payable to staff workers are subject to socso contributions. Replied by kap chew on topic petrol food allowance is part of epf contribution. Under section 45 of the employees provident fund act 1991 epf act employers are statutorily required to contribute to the employees provident fund commonly known as the epf a social security fund established under the epf act to provide retirement benefits to employees working in the private sector.

Any contribution payable by the employer towards any pension or provident fund. Employees provident fund act 1991. Subject to the provisions of section 52 every employee and every employer of a person who is an employee within the meaning of this act shall be liable to pay monthly contributions on the amount of wages at the rate respectively set out in the third schedule. Any gratuity payable on discharge or retirement of the employee.

However the epf contribution will be 25 higher for initial few years and a bit higher later basic pay is assumed to increase at 3. Payments exempted from epf contribution. These contributions comprising the member s and employer s share will be credited into the member s epf account. Epf corpus with pf contribution 12 of basic allowance employee contribution 3 67 of basic allowance employer contribution rs.

Service charges tips etc overtime payments. Employers are legally required to contribute epf for all payments of wages paid to the employees. Not all wages payments to staff workers are subject to socso contribution and there are certain wages excluded from socso contribution. Payments exempted from socso contribution.

The extent of the employers obligation to contribute is limited in 2 ways. Wages subject to socso contribution. That is 28 higher. The payments below are not considered wages by the epf and are not subject to epf deduction.