The content of this article pertains to the altHR payroll module (not PayrollPanda). As of this date, the altHR payroll module has been discontinued as we form a new partnership with PayrollPanda to bring forth enhanced payroll solutions for our users.
What is Voluntary Excess (VE) Contribution?
- Every employee and every employer of a person who is defined as an employee shall be liable to pay a standard monthly EPF contribution which is 11% from the monthly wages for the employee portion, and 12% or 13% from the monthly wages for the employer portion. Aside from the standard rate, employee and/or employer is able to opt to contribute more EPF and this is what we call Voluntary Excess (VE).
Who can contribute Voluntary Excess (VE)?
- Both the Employee and/or Employee.
- Employee: If the employee wants to contribute more money to increase their EPF savings, they can choose to pay more from their employee portion.
- Employer: If the employer wants to contribute more money to increase staff benefits or for other reasons, they can choose to pay more from the employer portion.
NOTE: If one of the parties has opted for the VE, the other party doesn't need to follow by having the VE. For example, Company ABC is giving 2% of extra VE on top of the standard 12% or 13% for the employer portion - the employee is not compulsory to follow +2% VE on top of the normal 11% for the employee portion, the employee can remain at 11%, vice versa.
How to apply for Voluntary Excess (VE)?
- For Employee:
Fill up the Borang KWSP 17A(AHL)/ KWSP 18A (AHL) form
Submit to the employer
The employer who receives the form from the employee will need to update the VE in the Company’s i-Akaun
- For Employer:
Submit the application through Company’s i-Akaun and select the employees that the company wishes to contribute VE.
For more information, you can refer to this KWSP link - https://www.kwsp.gov.my/documents/20126/131466/PANDUAN+PENGGUNA+eVE+NORMAL+%28BM%29.pdf/55e08c41-cafd-938c-348e-aa28d2bcb8a1?t=1647700199187
Note: Once the Voluntary Excess (VE) has been updated in your Company’s i-Akaun, you can proceed to update the Voluntary Excess (VE) percentage in altHR.
How to add Voluntary Excess (VE) in altHR?
- Head to Payroll > Compensation on the left panel of the admin dashboard.
- Search for the employee that you would want to update VE. Alternatively, you can scroll down to search for the employee.
- Click View to view the employee's details.
- Click Statutory. You will then be taken to the Compensation under the People module.
- Click Statutory Details and then click Edit.
- Under EPF Contribution > Tick Additional contribution for either Employee or Employer or both > select the amount of Employee Additional Contribution %.
- Important to note that once you have added the Additional Contribution, the additional contribution calculation will immediately reflect on the upcoming month’s pay run.
- If the additional contribution is effective on a future date, please wait until the effective month to update the Employee Additional Contribution %
Employee (Additional Contribution)
Employer (Additional Contribution)
- Click Confirm to save.
When to pay Voluntary Excess (VE) contribution to EPF?
- VE contribution should be paid together with the standard contribution, and the deadline for EPF contribution payment is every 15th of the following month.
Can I revoke the Voluntary Excess (VE)? And how do I revoke the Voluntary Excess (VE)?
- Yes. Both employee or employer can revoke the VE anytime.
- If the employee wish to revoke the employee portion’s VE, they must submit the Borang KWSP 17A(AHL)/ KWSP 18A (AHL) form to the employer and the employer will need to update in the Company’s i-Akaun (Pembatalan) and update in altHR by untick the Additional Contribution under Employee Contribution %.
- While if the employer wish to revoke the employer portion’s VE, the employer can directly update the revocation in the Company’s i-Akaun (Pembatalan), and update in altHR by untick the Additional Contribution under Employer Contribution %.
- For more information, refer to this KWSP link - https://www.kwsp.gov.my/documents/20126/131466/PANDUAN+PENGGUNA+eVE+NORMAL+%28BM%29.pdf