Employees Provident Fund e-Payroll - Empowering employers, protecting employees

In Malaysia, private sector employers are mandatorily required to make retirement contributions on behalf of employees to the Employees Provident Fund (EPF). However, many small and medium enterprises (SMEs) have failed to comply with the law since they do not have a proper payroll management system in place.

The EPF has developed a free basic payroll solution that is available to all private sector employers:

• Phase 1 (in 2021) allows the e-Payroll to automatically calculate salary and deduction accurately, and send contributions to the EPF.
• Phase 2 (in 2022) would extend the seamless form submissions and payments to other agencies such as the Social Security Organisation (SOCSO) and the Inland Revenue Board Malaysia (IRBM) with a single click.
• Phase 3 (in 2023) is a plan to make it mandatory for all employers to submit payroll data to e-Payroll.

With all of these in place, the e-Payroll would serve as a single touch-point for all key agencies’ statutory contributions and deductions. This would help address the issue of data disparity and would streamline data for future use between agencies and the government.