Wages refer to any monetary payment owed to an employee under a contract of service or apprenticeship, regardless of the payment frequency (monthly, weekly, daily, etc.).
However, what type of payment is liable for EPF contribution or not? Let’s take a look further on this for better understanding:
Payments Liable for EPF Contribution
- Salary
- Payment for unutilised annual or medical leave
- Bonus
- Allowance
- Commission
- Wages for half day leave
- Incentive
- Arrears of wages
- Wages for maternity leave
- Wages for study leave
- Other payment under contract of service or otherwise
Payments Not Liable for Contribution
- Service charge
- Overtime payment
- Gratuity
- Retirement benefit
- Retrenchment, temporary lay-off or termination benefits
- Any traveling allowance or the value of any travel concession
For more info, refer here.
