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using allowances to avoid EPF contribution

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asked on Jan 2, 2014 at 18:27
by   teha123
My company currently pays me a standard of RM 800 as allowance as my increment. Doing this allows them to avoid contributing to the epf. This amount appears in my payslip.Do they have the right to do this?

As of now whenever they want to increase my salary, they will give me allowance instead.

Do they contribute EPF to my current basic salary.
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2 Answers
answered on Jan 4, 2014 at 06:05
by   arun1011
They have to contribute EPF on the allowance as well if it is fixed. You may want to lodge a complaint at the EPF about this.
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answered on Mar 5, 2014 at 18:42
by   jeremy
wat is the difference between fixed and not fixed?

if not fixed need any receipt attach to prove for it?
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