FACILITATING THE CONTRIBUTION PROCESS
MANAGING CONTRIBUTIONS
One of KWAP’s primary roles is managing the pension contributions from employers, comprising Statutory Bodies, Local Authorities and Agencies. In discharging this responsibility, we ensure that contributing employers comply with the relevant legislation and regulations through regular compliance and enforcement efforts.
Understanding More About Contribution
The responsibility of collecting pension contributions was initially undertaken by the Employees’ Provident Fund prior to January 1979. Other government agencies involved were the Public Service Department, Treasury Malaysia and the Accountant-General’s Department until the incorporation of KWAP in March 2007. Effective 1 March 2007, pension contributions have been remitted to Retirement Fund Incorporated (KWAP).
Registration of Employee as KWAP Member
Employers are required to register their employees with KWAP using the Member Registration Form (CN2).
- Employers are required to remit pension contributions for their, pensionable employees at the rate of 17.5% of the basic salary.
- Employers are required to submit the Contribution form (CN3) with the correct contribution amount and employee details.
- Contributions shall be remitted on or before the last date of the following month.
- Secondment agencies are required to notify KWAP of any employment of seconded staff by providing the particulars and details of the secondment.
- Employers, i.e. the secondment agencies, are required to remit pension contributions for their seconded staff (with pensionable status) throughout the period of secondment.
- The rate of pension contributions payable is 17.5% of the basic salary of the secondment officer(s).
- Employers are required to notify KWAP of any cessation or termination of the secondment period.
Total Contributions
(as per 2020 Annual Report)
Get the Resources You Need
- CN1 PENDAFTARAN MAJIKAN
- CN2 PENDAFTARAN AHLI
- CN3 BORANG CARUMAN
- CN4 BORANG TUNGGAKAN CARUMAN
- CN5 BORANG TUNTUTAN BAYARAN BALIK
- CN5A BORANG PERMOHONAN BAYARAN BALIK SYER KERAJAAN (INDIVIDU) (OLEH BEKAS PEGAWAI SENDIRI)
- CN5B BORANG PERMOHONAN BAYARAN BALIK SYER KERAJAAN (INDIVIDU) (OLEH PENTADBIR HARTA PUSAKA DAN/ATAU PEMEGANG PROBET)
- CN6 MAKLUMAT BAYARAN CARUMAN MELALUI BANK
- CN7 PERMOHONAN PENGECUALIAN DENDA
- BORANG PENDAFTARAN PORTAL CARUMAN
SAFEGUARDING THE PROCESS
Rate of Contribution
Monthly contributions for permanent employees with pensionable status is 17.5% of the employee’s monthly basic salary.
Compliance & Enforcement
The objective of our compliance and enforcement visits to the contributing employers is to ensure compliance by employers with the provisions under the Statutory and Local Authorities Pensions Act 1980 (Act 239).
Penalty
Employers who fail to remit pension contributions within the prescribed time shall be penalised under Section 8(4) of the Statutory and Local Authorities Pensions Act 1980 (Act 239). Penalties are charged at the rate of 0.5% in respect of each month in default of payment of the amount that remains unpaid.
