What is the minimum contribution an employer must make to EPF?

The minimum contribution an employer must make to the Employees' Provident Fund (EPF) is indeed 12% of the employee's basic salary. This percentage is mandated for ensuring that employees have a secure financial backup for their retirement. The EPF scheme aims to encourage savings and investment among employees, facilitating a sustainable future for them after they stop working.

The contribution is split between the employer and employee, with the employer contributing a significant portion, which not only boosts the employee's EPF account but also acts as a form of social security. The system is designed to accumulate funds for employees over the course of their careers, allowing for growth through compounded interest, which is beneficial for long-term savings goals.

Understanding the stipulated percentage is crucial for both employers and employees, as it highlights the employer's responsibility in contributing to employees' retirement savings and the financial planning of employees for their future.