<img height="1" width="1" style="display:none" src="https://www.facebook.com/tr?id=705389681562533&amp;ev=PageView&amp;noscript=1">

[Malaysia] PayrollServe Malaysia latest statutory development

The Malaysia government in response to the COVID-19 pandemic, has implemented various support measures for individuals and businesses. Read the key updates below: 

Employees Provident Fund (EPF)

1. EPF i-Lestari Withdrawal

1.1 What is i-Lestari Withdrawal?

i-Lestari Withdrawal is a facility intended as a financial relief to assist all EPF members during this COVID-19 pandemic period with the objective to provide monthly basic financial needs.

1.2 What is the effective period of i-Lestari Withdrawal facility?

i-Lestari Withdrawal facility starts from 1 April 2020 until 31 March 2021.

1.3 What are the details of i-Lestari Withdrawal facility and how does it work?

a) i-Lestari Withdrawal facility allows EPF members to withdraw from Account 2.
b) Payment of withdrawal will be made on a monthly recurring basis for a maximum of
12 months only or until March 2021.

1.4 How much can be withdrawn under i-Lestari Withdrawal facility?

Permitted amount ranges from a minimum of RM50 to a maximum of RM500 a month,
subject to the amount of savings in Account 2.

1.5 Who can apply for i-Lestari Withdrawal facility?

Malaysian citizens, permanent residents and non-Malaysians EPF members aged 55 years and below with EPF savings in Account 2.

1.6 How to apply for i-Lestari Withdrawal?

Application form is available on EPF website and submit application via:

  • Online
  • Email to ilestarimohon@epf.gov.my
  • By post to Kumpulan Wang Simpanan Pekerja, Karung Berkunci No. 220, Jalan Sultan 46720 Petaling Jaya (Pengeluaran i-Lestari)

2. New statutory contribution rate 2020

2.1 What is the current EPF contribution rate for 2020? 7% or 11%?

The new statutory contribution rate for employees is now 7%.

2.2 When does the new contribution rate take effect?

It takes effect from April 2020 to December 2020.

2.3 Does the change apply to everyone?

The new statutory contribution rate applies to employees below 60 year old who are liable for contribution. The statutory contribution rate for employees aged 60 and above will remain unchanged.

2.4 Can I choose to maintain the current employee contribution rate of 11%?
Employees can choose to retain at 11% by completing KWSP 17A (Khas 2020) form and email to VE2020@epf.gov.my with email subject as “VE2020” or submit to the nearest EPF branch.

Social Security Organisation (SOCSO)

1. Perkeso COVID-19 Screening Subsidy

High risk foreign workers can now receive COVID-19 screening test at any clinics that are registered with the Ministry of Health.

1.1 Who are eligible for the screening subsidy?

Workers must be registered Perkeso contributor in the construction industry and health
services within Kuala Lumpur or Selangor.

1.2 How do I apply for the subsidy?

Employer can apply online via Perkeso website and will receive RM150 for each screening done on every foreign worker with effect from 1 June 2020.

Employment Insurance System (EIS)

1. EIS unemployment benefits for termination

1.1 On what conditions does EIS provide unemployment benefits?

EIS grants unemployment benefits if you lost your job regardless if it is voluntary or mandatory separation scheme, redundancy due to business closure affected by the COVID-19 pandemic or even constructive dismissal.

1.2 What are included in the EIS benefits?

EIS benefits include job search allowance, income reduction allowance, training fee subsidies, training allowance and early re-employment allowance.

Own your future with RSM Stone Forest

How the IFRS Sustainability Disclosure Standards could impact the small to middle market

“We help executives thrive by offering solutions focused on your goals and based on a deep understanding of your industry.”

Lim Su Ping - Associate Director, XBRL

Related Insights

Singapore’s Work Permit & S Pass Changes 2025: What Empl...

Singapore Budget 2025: Key Takeaways for Employers

Key Tax Updates for YA 2025: Changes to Form IR8A

Manual Claims Are Holding You Back: Here's How Outsourcing H...

Singapore’s Workplace Fairness Bill: What Employers Need to ...

Navigate Payroll Challenges and Earn a WSQ Certification

CPF Updates: What to Expect in 2025 and 2026

Maximise Business Success by ensuring Human Resources (HR) C...

Singapore Strengthens Parental Leave Policies to Support Fam...

Adapting to Singapore’s New Overseas Pension Contribution Re...

Streamlining Your Non-Profit’s Operations: Payroll Challenge...

Platform Workers Act: Key Implementations and Impacts

IRAS Year-End Reporting: A Comprehensive Guide for Businesse...

Navigating the Transition from MEPS to DDA with PayrollServe

Streamline Your Business Operations with Payroll Outsourcing

Navigating Flexible Work Arrangements In Singapapore: A Guid...

Mastering payroll and HR solutions with PayrollServe: A guid...

Can Dependant Pass (DP) holders work in Singapore? A guide t...

Understanding the COMPASS framework

[Malaysia] Statutory updates on new amendments to the first ...

New scheme for companies to hire more S pass and work permit...

What you need to know about the existing Tech.Pass

Statutory Update of Work Pass (Effective 1 Sept 2022)

Update on progressive wage model for retail workers

Job Growth Incentives scheme

Hong Kong's Employment Ordinance 2021

MOM announces points based assessment framework for EP candi...

[Malaysia] Statutory rate for employee’s EPF share of contri...

Changes in EP and S pass salary criteria

Foreign worker levy waiver and rebate extended for construct...

Budget 2020 – HR & payroll-centric updates

Key changes to Employment Act (with effect from 1 April 2019...

New vaccination requirement for foreign-born children applyi...

S pass salary criteria (with effect from 1 January 2019)

Singapore’s Work Permit & S Pass Changes 2025: What Empl...

Singapore Budget 2025: Key Takeaways for Employers

Key Tax Updates for YA 2025: Changes to Form IR8A

Manual Claims Are Holding You Back: Here's How Outsourcing H...

Singapore’s Workplace Fairness Bill: What Employers Need to ...

Navigate Payroll Challenges and Earn a WSQ Certification

CPF Updates: What to Expect in 2025 and 2026

Maximise Business Success by ensuring Human Resources (HR) C...

Singapore Strengthens Parental Leave Policies to Support Fam...

Adapting to Singapore’s New Overseas Pension Contribution Re...

Streamlining Your Non-Profit’s Operations: Payroll Challenge...

Platform Workers Act: Key Implementations and Impacts

IRAS Year-End Reporting: A Comprehensive Guide for Businesse...

Navigating the Transition from MEPS to DDA with PayrollServe

Streamline Your Business Operations with Payroll Outsourcing

Navigating Flexible Work Arrangements In Singapapore: A Guid...

Mastering payroll and HR solutions with PayrollServe: A guid...

Can Dependant Pass (DP) holders work in Singapore? A guide t...

Understanding the COMPASS framework

[Malaysia] Statutory updates on new amendments to the first ...

New scheme for companies to hire more S pass and work permit...

What you need to know about the existing Tech.Pass

Statutory Update of Work Pass (Effective 1 Sept 2022)

Update on progressive wage model for retail workers

Job Growth Incentives scheme

Hong Kong's Employment Ordinance 2021

MOM announces points based assessment framework for EP candi...

[Malaysia] Statutory rate for employee’s EPF share of contri...

Changes in EP and S pass salary criteria

Foreign worker levy waiver and rebate extended for construct...

Budget 2020 – HR & payroll-centric updates

Key changes to Employment Act (with effect from 1 April 2019...

New vaccination requirement for foreign-born children applyi...

S pass salary criteria (with effect from 1 January 2019)