The Employee Provident Fund (EPF) is a key element of retirement planning. Both employers and employees contribute to this fund based on a percentage of the employee’s salary. 


Sometimes, the default contribution rates need adjustments, which is where 'Custom Rate' and 'Custom Value' come into play. This article explains the concepts of 'Add to Default' and 'Overwrite', and how they affect both employees and employers.

Custom Rate


Add to Default

Definition: 'Add to Default' allows adding a custom contribution rate on top of the default EPF rate. The default rate follows the EPF table rate and the additional custom percentage is base on exact calculation amount.

How it works:

  • Employee: Default rate of 11% + custom rate of 3% = total rate of 14%.
  • Employer: Default rate of 12%*  (or 13%*) + custom rate of 2% = total rate of 14% (or 15%)


*depend on the employee's basic salary (less or more than RM 5,000) 


Overwrite

Definition: 'Overwrite' replaces the default contribution rate with a new custom rate. The calculation will be based on exact percentage amount instead of following the EPF table.

How it works:

  • Employee: Default rate of 11% overwritten with a custom rate of 14%.
  • Employer: Default rate of 12% (or 13%) overwritten with a custom rate of 16%.



Custom Value


Add to Default

Definition: 'Add to Default' allows setting a fixed Custom Value in addition to the default percentage rate.

How it works:

  • Employee: The employee’s total EPF contribution includes both the default percentage and the fixed Custom Value.
  • Employer: The employer’s total EPF contribution includes both the default percentage and the fixed Custom Value.


Overwrite

Definition: 'Overwrite' sets a fixed Custom Value to replace the default percentage rate entirely.

How it works:

  • Employee: The employee’s EPF contribution is solely based on the fixed Custom Value set.
  • Employer: The employer’s EPF contribution is solely based on the fixed Custom Value set.

Below is an example for how BrioHR calculate based on the EPF setting.


Employee: Ahmad

Basic: RM 9,180 (salary > RM 5,000, EPF Employer default rate is 12%

EPF Category: Category A
Employee EPF : 11% (Default) - unchanged

Employer EPF : 17% 


Two ways to setup his additional EPF contribution in BrioHR if you choose "Custom Rate" option.


A) Custom Rate - Add to Default


  • At [EPF Employer custom value (%)] : add 5
  • 12% default rate (follows EPF Table) + 5% exact calculation


12% default rate from table : RM 1,104 

5% exact calculation : RM 9,180 x 5%= RM 459 

Total Employer EPF = RM 1,563



12% amount from PART A - EPF Table


B) Custom Rate - Overwrite


  • At [EPF Employer custom value (%)] : add 17
  • The Employer EPF amount is the exact calculation
  • RM 9,180 x 17% = RM 1,561



How to Edit Custom EPF Settings


Modify in Bulk

  1. Navigate to HR Lounge > Payroll
  2. In Payroll Dashboard
  3. Locate Payroll Employee List > Bulk download


Modify Individually

  1. Navigate to Employee profile page
  2. On the Left tab > click Payroll menu
  3. Click on pencil icon under Statutory Contributions section
  4. Click save once done


For how to modify individual's payroll information, please refer to this article : How to Update Employee's Personal Payroll Details?