Definition of an Employee
An employee is anyone employed under a contract of service or apprenticeship, whether written, oral, expressed, or implied, excluding individuals listed in the First Schedule of the EPF Act 1991.
- Contract of Service – An agreement where an individual agrees to work for an employer as an employee.
- Contract of Apprenticeship – A written agreement where an employer commits to training an apprentice for a specified period, during which the apprentice works for the employer. (Reference: Employment Act 1955)
Employment Age
- Minimum Age: Subject to the Children and Young Persons (Employment) Act 1966
- Maximum Age: 75 years
Persons Exempted from EPF Contributions
The following individuals are not required to contribute under the First Schedule of the EPF Act 1991:
- Nomadic aborigines, unless recommended by the Director-General of the Department of Aborigines.
- Domestic servants, except when employed by:
- Employers listed in the Second Schedule of the Act.
- Registered societies or co-operatives.
- Businesses registered/licensed under relevant laws.
- Incorporated corporations.
- Out-workers (as per the Workmen’s Compensation Act 1952), except those employed by employers in the Second Schedule.
- Detainees in prisons, Henry Gurney Schools, approved schools, rehabilitation centers, mental hospitals, or leper settlements.
- Members of the Administration, as defined under Article 160 of the Federal Constitution.
- Foreign employees who:
- Contribute to a provident fund outside Malaysia as per their employment terms.
- Have received written approval from the EPF Board to contribute to a Malaysian provident fund.
- Individuals aged 75 and above.
Persons Required to Contribute
All employers must contribute EPF for any individual engaged under a Contract of Service or Apprenticeship, except those exempted under the First Schedule of the EPF Act 1991. This ensures compliance with EPF contribution regulations and supports employee financial security.
