Payments Subject to EPF Contribution

In general, all monetary payments that are meant to be wages are subject to EPF contribution.

These include:

  • Salaries
  • Payments for unutilised annual or medical leave
  • Bonuses
  • Commissions
  • Incentives
  • Arrears of wages
  • Wages for maternity leave
  • Wages for study leave
  • Wages for half day leave
  • Other contractual payments or otherwise

Payments Exempted From EPF Contribution

The payments below are not considered “wages” by the EPF and are not subject to EPF deduction.

  • Service charges (tips, etc)
  • Overtime payments
  • Gratuity (payment given for excellent service)
  • Retirement benefits
  • Termination benefits
  • Travel allowances
  • Payment in lieu of notice of termination of service (payment given when employee’s service is terminated)
  • Director's fee