Company only pays EPF on basic, not on allowances. Is this normal?

From my experience dealing with payroll, it depends on the type of allowance. Under EPF rules, some payments like travelling allowance and certain reimbursements are genuinely not subject to EPF contribution. But a fixed monthly allowance that is really part of your wages can be a grey area, and some companies split salary into 'allowance' precisely to reduce their EPF portion. I would ask HR to state clearly which allowance and why. You can also call KWSP hotline 03-8922 6000 or walk into any branch to confirm, they are quite helpful. For something affecting your retirement money, better verify with EPF directly than trust office gossip.

This is more common than people think, especially in SMEs. I only realised years later that my 'allowance-heavy' salary structure meant my EPF was much lower than it should be, which hurt at retirement calculation. What I did was request an official breakdown in writing, then lodged an enquiry with KWSP. Turned out part of it should have been contributed. If it's a real fixed allowance forming part of wages, EPF should apply. Keep all your payslips as evidence. Honestly, do check with EPF officially before accusing anyone, rules have specific definitions and you don't want to burn bridges over a misunderstanding.