What effect do EPF contributions have on employers' payroll costs?

The chosen answer highlights that EPF (Employee Provident Fund) contributions indeed increase total payroll expenses for employers. This is because these contributions are an additional financial obligation that employers must fulfill, typically calculated as a percentage of each employee's salary. Consequently, when employers contribute to EPF, it adds to the overall payroll costs, as these contributions are considered part of the compensation package provided to employees.

Understanding this cost structure is crucial for employers when budgeting and planning their finances, as these contributions can significantly impact their total expenditure on human resources. Factors such as the number of employees, salary levels, and mandated contribution rates all play a role in determining the extent of this increase in payroll expenses.