IMPORTANT ANNOUNCEMENT : MUST READ BEFORE PROCESSING JULY 2022 PAYROLL
TO ALL PAYROLL MASTERS, TAKE NOTE THAT THE EPF CONTRIBUTION RATE FOR EMPLOYEES WILL REVERT TO 11% FROM 1 JULY 2022 ONWARDS.
In conjunction with the government’s announcement during Budget 2022, the minimum statutory EPF contribution rate for employees returns to 11% from July 2022 wages onwards (August 2022 contribution).
(See KWSP Press Release article here : EPF SUPPORTS BUDGET 2022 MEASURES TO SPUR THE ECONOMY AND BUILD RESILIENCE, KEY TO REBUILDING RETIREMENT SAVINGS)
Hence, in abiding by this mandate by the government, we at BrioHR, have auto-updated the default minimum statutory EPF contribution rate for employees in the system, from 9% to 11%.
Based on your current configuration, you MAY need to perform some actions IN ADVANCE of your usual payroll cycle, to ensure the correct contribution rate is applied to the employees.
HERE'S WHAT YOU NEED TO TAKE NOTE OF :
1. The new statutory contribution rate will apply only to employees who are below 60 years of age, and eligible for EPF contribution.
2. The statutory contribution rate for employees aged 60 years old and above, remains unchanged.
AS THE PAYROLL PROCESSOR, HOW TO ENSURE THAT THE NEW CONTRIBUTION RATE IS APPLIED IN YOUR BRIOHR ACCOUNT, FOR THE EMPLOYEES ?
A. If the current “EPF contribution type” settings are one of the following,
you DO NOT need to perform any further actions :
1. “EPF contribution type” > “Default (As per EPF recommendation)”
Here, the system has auto-updated the contribution rate from 9% to 11% accordingly.
2. “EPF contribution type” > “11% table”
Here, the system has auto-captured the contribution rate as 11% accordingly.
3. “EPF contribution type” > “Custom Rate” + “EPF Contribution Mode” > “Overwrite”
Here, the system will auto-capture the custom value you have input to overwrite accordingly.
4. “EPF contribution type” > “Custom Value” + “EPF Contribution Mode” > “Overwrite”
Here, the system will auto-capture the custom value you have input to overwrite accordingly.
B. If the current “EPF contribution type” settings are one of the following, you MUST perform the following actions BEFORE you process the July 2022 payroll :
*To all Payroll Masters, please take note of the below configurations to be performed.
1. “EPF contribution type” > “Custom Rate” + “EPF Contribution Mode” > “Add to default”
OR
2. “EPF contribution type” > “Custom Value” + “EPF Contribution Mode” > “Add to default”
In both the above scenarios, the Custom Rate / Value you have input, will be an ADDITION to the 11% Default contribution rate.
For example :
a. Employee’s Default Contribution Rate : 11% (System auto-updated default rate)
b. Employee’s Custom Contribution Rate : 2% (Input manually by you)
TOTAL Employee Contribution = 13% (11% Default Rate + 2% Custom Rate)
*This means that the custom value will be added on top of the newly updated default contribution rate of 11%.
FREQUENTLY ASKED QUESTIONS :
What happens when I re-open the June 2022 payroll? Will the employees’ default contribution rate auto-update to 11% as well?
> No, the default contribution rate for the employees in the June 2022 payroll will remain at 9%, even after re-opening the payroll as a draft.
> The newly updated 11% default contribution rate, will only apply for July 2022 wages onwards.
> Hence, you do not need to modify any EPF settings for the employees, for the June 2022 payroll.
If I am using the "Default + Custom Rate/Value" settings, how do I perform the configurations in bulk for more than one employee at a time?
> STEP 1 : Download the “Employee Payroll Data” template
a. At HR Lounge, click on Payroll > Bulk Download/Upload > Download
b. Input/Select the new information in the relevant fields
> STEP 2 : Upload the modified “Employee Payroll Data” template
a. At HR Lounge, click on Payroll > Bulk Download/Upload > Choose File > Upload Excel File
The new information will then be updated and recorded in the system accordingly.
*NOTE :
1. The above steps are only applicable if the current settings are "Default + Custom Rate/Value".
You MUST perform these actions IN ADVANCE of your usual payroll cycle, to ensure the correct contribution rate is applied to your employees.
2. If your current settings are any of the following,
you DO NOT need to perform any further actions/modifications in the account:
a. “EPF contribution type” > “Default (As per EPF recommendation)”
Here, the system has auto-updated the contribution rate from 9% to 11% accordingly.
b. “EPF contribution type” > “11% table”
Here, the system has auto-captured the contribution rate as 11% accordingly.
c. “EPF contribution type” > “Custom Rate” + “EPF Contribution Mode” > “Overwrite”
Here, the system will auto-capture the custom value you have input to overwrite accordingly.
d. “EPF contribution type” > “Custom Value” + “EPF Contribution Mode” > “Overwrite”
Here, the system will auto-capture the custom value you have input to overwrite accordingly.
If you are unsure about how to configure the above settings in your BrioHR account, please feel free to reach out to our Client Success team via chat support or email ( support@briohr.com ).
Our friendly support team would be more than happy to guide you!