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:
  1. Fill up the Borang KWSP 17A(AHL)/ KWSP 18A (AHL) form

  2. Submit to the employer

  3. The employer who receives the form from the employee will need to update the VE in the Company’s i-Akaun

  • For Employer:
  1. 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?

  1. Head to Payroll > Compensation on the left panel of the admin dashboard.
  2. Search for the employee that you would want to update VE. Alternatively, you can scroll down to search for the employee.
  3. Click View to view the employee's details.

  4. Click Statutory. You will then be taken to the Compensation under the People module.

  5. Click Statutory Details and then click Edit.

  6. 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)

  7. 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)?