Re: Is Allowance eligible for EPF deductions
I am working in an audit firm. My basic salary now is RM1,600 and my fixed allowance is RM600. My employer of course will contribute the 12% EPF based on RM1,600. Nowadays, employer wants to save staff cost by only increase the allowance instead of the basic, this way they avoid paying additional EPF on every increment. So my salary for the past 10 years remain RM1600 whereas my allowance kept increase. So, if actually an employee receiving a monthly fixed allowance, is the allowance should be also included in the calculation of the EPF?