Employees Provident Fund (EPF/KWSP)

Employees Provident Fund (EPF), also known as KWSP or Kumpulan Wang Simpanan Pekerja, is a government-managed retirement savings scheme. This plan is designed to provide retirement benefits to its members.

Under this scheme, there are two mandatory contributions from the employee as well as the employer, who has to contribute on behalf of their associates.

Currently, there are 7.05 million active and contributing members and 493,229 active employers.

Quick Reads

What is the Provident Fund Deduction Amount from My Salary?

The amount that is deducted from your salary is calculated based on your monthly wages. This amount is then credited to your individual account in the EPF. For instance, if your monthly wages are RM5,000 and below, you contribute 11% of your salary to EPF and your employer contributes 13%. If your salary exceeds RM5,000, you will still contribute 11% of your wages, but your employer’s contribution will be 12%.

What are the Interest Rates on EPF?

The current dividend rate for conventional savings or Simpanan Konvensional per annum is at 6.90%, which has been the highest ever in the last two decades. For Shariah savings, the current dividend rate per annum stands at 6.40%.

What are the Tax Benefits on EPF?

Your EPF contributions are tax deductible up to a maximum amount of RM6,000 a year. This amount is inclusive of your life insurance premium. However, this amount is subject to periodic amendments made by the government.

Additionally, all the dividends you have earned from your EPF investments are exempted from tax. You don’t have to pay taxes for the money you have withdrawn under the EPF savings withdrawal schemes as well.

What If I Don’t Want to Contribute to the EPF?

You cannot choose to not contribute to the EPF. You can also not collaborate with your employer and request them to not contribute as well, as this is against the law.

How Do I Check my EPF Balance?

You can check your EPF savings by accessing your EPF account through i-Akaun, which is available on the EPF website.

You will also receive a statement once a year at your registered address. The statement can be obtained at EPF offices and kiosks. Do note that you will have to provide identification proof if you’re requesting for your statement at the EPF Kiosk or through counter services.

When Can I Withdraw My EPF Savings?

EPF savings are meant to help you during your retirement. Hence, you will not be able to withdraw all your savings before you retire. However, there are several withdrawal facilities available. These are divided into two categories - Pre-Retirement Withdrawal and Retirement Withdrawal.

With Pre-Retirement Withdrawal, you can withdraw a certain amount of your savings. Retirement Withdrawal lets you take all your savings when you reach your retirement age.

Below are the types of withdrawals available:

  • Age 50 years withdrawal
  • Age 55 years withdrawal
  • Age 60 years withdrawal
  • Withdrawal to reduce/redeem housing loan
  • Incapacitation withdrawal
  • Leaving country withdrawal
  • Education withdrawal
  • Pensionable employees withdrawal and optional retirement withdrawal
  • Members' Investment Scheme
  • Withdrawal to purchase/build a house
  • Withdrawal of savings of more than RM1 Million
  • Housing loan monthly instalment withdrawal
  • Death withdrawal
  • Health withdrawal
  • Hajj withdrawal
  • Flexible housing withdrawal
  • PR1MA housing withdrawal
  • Advance Government Share Calculation (Pre-PEN)

What Does the EPF Contribution Breakup Look Like?

Your EPF is calculated on the total of two amounts—basic salary and bonus. For example, your basic salary is RM3,000 and your bonus is RM2,000. A 11% employee contribution rate and a 13% employer contribution rate will be charged on the combined amount, which is RM5,000.

How Do I Get in Touch With the EPF Contact Management Centre?

You can call the EPF Contact Management Centre at 03-89226000. You can also send a fax to them at 03-89226222.

The operating hours for this centre are 8:00 a.m. to 6:00 p.m. from Monday to Friday, and they’re closed on Saturdays, Sundays, and Federal Territories and Selangor public holidays.

How Do I Lodge a Complaint to the EPF?

There are several reasons why you would want to lodge a complaint to the EPF. Some of them are listed below for your reference:

  • No contributions from employer.
  • Contribution deducted from your salary but not sent to the EPF.
  • Contribution made is less than the stipulated amount.
  • Contribution not paid according to the right month.
  • Information submitted in the contribution form is incorrect and/or incomplete.

In any of these instances, you can submit your complaint to the EPF in writing or you can visit the nearest EPF branch.

When you’re lodging your complaint, you will have to support it with the following documents and information:

  • Personal details like name, ID card number, and EPF membership number.
  • Name, number, and address of employer.
  • Service contract between you and your employer (if any).
  • Time period you worked for your employer.
  • Salary amount paid to you.
  • EPF contribution amount deducted from your salary.
  • Copy of your salary slip showing EPF deductions.
  • Other documents (if any).

It is advised to submit your complaint as soon as your find any irregularities.

FAQs

Q. How do I register for i-Akaun as an employee?

A. You can use your MyKad at any EPF Kiosk or Counter or call the EPF Contact Management Centre at 03-89226000 for your activation code. Do note you will have to be a member to register for i-Akaun. Once you receive your code, visit the EPF website and select ‘Login to i-Akaun (Member)’. Under this option, click ‘i-Akaun Activation’ and enter the code, which is only valid for 30 days.

Q. What are the eligibility requirements for i-Akaun?

A. You will need to own a Member ID number and a valid EPF number as a Malaysian member. If you’re a non-Malaysian member, you will need a valid passport or a valid EPF number.

Q. Can I change my i-Akaun User ID?

A. No. You cannot change your i-Akaun User ID, as it is unique and is used to identify you as a i-Akaun member.

Q. Will I be able to change my i-Akaun password?

A. Yes. In fact, it is recommended to change your password periodically to ensure safety and protect your account. If you want to change your password, login to i-Akaun and select the ‘Change Password’ option.

Q. What services will I receive on i-Akaun as a member?

A. There are several services you will have access to with your i-Akaun account. Listed below are the services:

  • Request for e-Pengeluaran.
  • Check your EPF statements.
  • Check your withdrawal status as well as history.
  • Check your nomination details.
  • Find the estimate amount for investments, savings, and withdrawals.
  • Update information on your profile.
  • Check EPF contribution transactions.
  • Check your i-Akaun activities.
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