Do I pay EPF on my own director salary?
If you draw a salary under a contract of service — an employee who happens to be a director — EPF and SOCSO apply as for any employee. A director paid only members-approved directors' fees, without an employment relationship, is treated differently. Substance decides, not the label.
Sources: EPF Act 1991LHDN guidance
Also asked as: director epf compulsory; pengarah kena caruman ke; epf for director malaysia; director socso.
Get this classified correctly at the start: reclassifying a year of payments after the fact means recomputed contributions, PCB and possibly penalties. Our panel accountants set the structure with you.
Key facts
- Salary under contract of service → EPF/SOCSO apply
- Directors' fees only → different treatment
- Substance over label
Call +60 10-383 5988 (a licensed secretary replies within one working hour (Mon–Fri 8:30am–5:30pm MYT; outside hours, first thing next working day)) or walk in at J-3A-15, Solaris Mont Kiara.