Economic Stimulus Package 2020 – Employees’ EPF Statutory Contribution Rate Lowered From 11% to 7%


Only employers need to fill out the Submission Form 17A (Khas 2020). Employees who want to keep it at 11%, are required to individually sign the form.

There are many questions about the new provident fund policy in the recently announced Economic Stimulus Package 2020 by former Prime Minister Tun Dr Mahathir Mohamad. Let’s look at questions about the EPF 11% to 7% rate:

1)Is 7% compulsory?

No, employees are free to choose.

2)Is 7% an employee deduction or an employer contribution?

7% is employee deduction.

3Should employees keep the original 11% deduction?

Yes, but you need to submit a declaration form to KWSP.

 4Which form to declare?

According to the announcement from KWSP, form 17A (Khas 2020) is required.

5Are Forms 17A (AHL) and Form 17A (Khas 2020) the same?

Form 17A (AHL) is not the correct form. The government has mentioned that the form and the new Schedule will be launched by mid-March at the latest.

6Should this form be filled for 7% or to retain 11%?

According to EPF, employees who want to retain 11% must fill in.

7Is this form submitted by hand or online?

Submitted by hand.

8Is only one form required for each employee who wants to remain at 11%?

It would be good if the employer listed all employees who want to remain at 11%.

9When did the 7% officially start and is it permanent?

The announcement states that it is temporary, from 1/4/2020 to 31/12/2020.

10Does 1/4/2020 mean the salary for March?

It starts with the April salaries, so the first reported 7% of EPF deduction will be reported before May 15, and the last report will be before January 15, 2021.

11When does the submission of Form 17A (Khas2020) begin and when does it end?

There’s no mention of it. The faster the submission the better.

For any enquiry on Employees’ EPF statutory contribution rate lowered from 11% to 7%, please contact us at +603 7985 9999 or email us at

Share with your friends & colleagues