How Your EPF Savings Work

Updated: 19 August 2026

EPF (Employees Provident Fund), or KWSP, is a retirement savings scheme where you and your employer contribute monthly. Your share is deducted from your salary, while your employer contributes on top, and your savings earn an annual dividend, or yearly return. Over time, these contributions and dividends build up your retirement savings.

Since 11 May 2024, new EPF contributions have been divided between three accounts, each with a different purpose and withdrawal rules. The largest share, 75%, goes into Akaun Persaraan for retirement, while 15% goes into Akaun Sejahtera for approved expenses such as housing, education, and healthcare. The remaining 10% goes into Akaun Fleksibel, which you can withdraw from at any time, subject to EPF's withdrawal rules.

Who Needs To Contribute To EPF

If you're employed in Malaysia's private sector, both you and your employer are generally required to contribute to EPF every month. Your employer registers you with EPF when they make your first contribution using your IC (identity card) details, so you don't need to apply separately.

Private Sector Employees

If you work in the private sector, EPF contributions are mandatory. Every month, part of your salary is deducted as your EPF contribution, and your employer contributes an additional amount on top. Both contributions are credited to the same EPF account under your name.

Public Sector Employees

Permanent civil servants covered under the government pension scheme do not contribute to EPF because their retirement benefits are provided through the pension system. If you're employed on a contract or temporary basis in the public sector, you will generally contribute to EPF instead.

Civil servants hired from 1 February 2024 are no longer on pensionable terms. They are placed on three-year contracts pending a new contributory permanent appointment scheme that the government is currently finalising, which would move recruits onto EPF. The Fiscal Outlook Report 2026 states the government expects to finalise a defined-contribution scheme administered by EPF to replace the defined-benefit pension for public servants. The scheme hasn't been implemented as of the date of this guide. Existing civil servants on the pension scheme are not affected.

Self-Employed Individuals

If you're self-employed, freelancing, running a business, or earning income through the gig economy, EPF contributions aren't mandatory. You can still save for retirement voluntarily through schemes such as i-Saraan, which offer government incentives for eligible contributors.

Non-Malaysian Employees And Permanent Residents

Permanent residents (PRs) contribute at the same rates as Malaysian citizens: 11% employee, 13% or 12% employer depending on salary.

From October 2025, other foreign employees working in Malaysia are also required to contribute to EPF if they hold a valid passport and an employment pass issued by the Immigration Department of Malaysia (domestic workers excluded). Both the employer and the employee contribute 2% of monthly wages each. Full details are on the EPF non-Malaysian citizen employees page.

EPF Contribution Rates

For Malaysian employees below the age of 60, the standard contribution rates are:

For example, if you earn RM4,000 a month, you contribute RM440, and your employer contributes RM520. That means RM960 is credited to your EPF account every month before your annual dividend is added. EPF calculates contributions from a wage band table with rounding, so your actual deduction may differ slightly from a straight percentage calculation. Check the full table at kwsp.gov.my if you want to verify your payslip figure. Using the current three-account allocation, that RM960 is divided into RM720 for Akaun Persaraan, RM144 for Akaun Sejahtera, and RM96 for Akaun Fleksibel.

Once you turn 60, both employee and employer contribution rates are reduced. The full contribution schedule is at kwsp.gov.my.

You can also choose to contribute more than the mandatory 11% through voluntary contributions. From 1 January 2026, EPF uses two names for these options. If you contribute yourself directly, that is called i-Simpan (previously known as Self-Contribution). If you contribute through your employer at a rate above the statutory minimum, that is called i-Topup (previously known as Voluntary Excess). Your employer isn't required to match any voluntary amount you contribute.

Where Your EPF Money Goes

Every contribution you and your employer make is automatically divided across three accounts. Each account has a different purpose and different withdrawal rules.

On 11 May 2024, EPF renamed and restructured its accounts. Account 1 became Akaun Persaraan, and Account 2 became Akaun Sejahtera. Akaun Fleksibel was newly created, starting at RM0 for everyone. Existing balances were not re-split. The 75/15/10 allocation applies only to contributions received from 11 May 2024 onwards. Full details are on the EPF account restructuring page. When the restructuring launched, members had a one-time window between 12 May and 31 August 2024 to move a portion of their Akaun Sejahtera balance into their new Akaun Fleksibel. The transfer could be made once, couldn't be cancelled, and the window closed permanently on 1 September 2024. If you didn't move money during that period, your Akaun Fleksibel balance started at RM0 and has been building only from contributions made since May 2024.

Think of it as one EPF account with three different purposes rather than three completely separate savings accounts.

• 75% goes into Akaun Persaraan
• 15% goes into Akaun Sejahtera
• 10% goes into Akaun Fleksibel

Akaun Persaraan (75%)

Akaun Persaraan is where most of your EPF savings go. This account is built for retirement, so the money generally remains untouched until you reach age 55. Because these savings stay invested for the longest period, they also have the greatest opportunity to grow through annual EPF dividends.

Understanding The Retirement Income Adequacy Framework

From 1 January 2026, EPF introduced the Retirement Income Adequacy (RIA) Framework, which sets three benchmarks for retirement savings at age 60. The lowest tier, Basic Savings, is the minimum EPF expects you to have in Akaun Persaraan by retirement to cover bare necessities. The two higher tiers (Adequate Savings at RM650,000 and Enhanced Savings at RM1.3 million) represent a comfortable retirement and greater financial security, respectively.

The old Basic Savings threshold was RM240,000, measured at age 55. The new framework raises the target to RM390,000 and moves the measurement point out five years to age 60. The transition is phased in over five years: RM270,000 at age 60 in 2026, rising by RM30,000 annually to RM390,000 by 2030. If you are planning around this, the shift in both the amount and the age is the bigger change.

The Basic Savings threshold is also age-dependent, and it is lower for younger members. A 25-year-old in 2026 needs only RM11,000 in Akaun Persaraan to exceed their threshold, while a 60-year-old needs RM270,000. The full table by age is on the i-Invest page at kwsp.gov.my.

Investing Through i-Invest

For most members, Akaun Persaraan doesn't require any action. The money stays in and grows on its own.

If you want to invest part of it into unit trust funds, EPF has a platform called i-Invest that lets members aged below 55 (Malaysian citizens, PRs, and non-Malaysians who joined EPF before 1 August 1998) redirect up to 30% of savings above the Basic Savings threshold into unit trust funds. The minimum investment amount is RM1,000. This is most relevant once you have built up savings well above the threshold for your age.

Unit trust funds are pooled investment funds managed professionally. The portion you invest through i-Invest is no longer part of your EPF account and does not earn the annual EPF dividend. Returns depend entirely on fund performance and are not guaranteed.

i-Invest replaced the older Members Investment Scheme (MIS). If you have legacy MIS investments, those remain managed separately. Check i-Akaun for your full investment history.

Akaun Sejahtera (15%)

Akaun Sejahtera is for the major expenses that come up before retirement. Each withdrawal type has its own conditions. The full list is in the withdrawals section below.

Akaun Fleksibel (10%)

Akaun Fleksibel gives you access to part of your EPF savings whenever you need it, with no specific reason required. You can apply through i-Akaun, and the funds are credited to your bank account after approval.

Every ringgit you withdraw stops earning future EPF dividends. With EPF paying 6.15% in 2025, a RM5,000 withdrawal costs you roughly RM308 in foregone dividends over a year. The timing matters too: EPF calculates dividends on your average daily balance throughout the year, so a withdrawal in January reduces your earning balance for eleven months, while a December withdrawal costs almost nothing. The later in the year you withdraw, the less dividend you forgo.

How EPF Grows Your Savings

Your EPF savings grow through annual dividends declared by EPF. Unlike interest paid by a bank, dividends are calculated based on your average daily balance throughout the year. This means the longer your money stays in your EPF account, the longer it has to earn dividends.

The EPF Act 1991 guarantees a minimum annual dividend of 2.5% for Simpanan Konvensional. The declared dividend has consistently exceeded this minimum.

For the financial year ended 31 December 2025, EPF declared a 6.15% dividend for both Simpanan Konvensional and Simpanan Shariah, announced on 28 February 2026, with a total payout of RM79.6 billion to members.

Recent EPF Dividend Rates

For the full picture going back to 2013, refer to our complete EPF dividend rate history or the official EPF dividend rates page. If you had RM10,000 in your EPF account for the entire year, a 6.15% dividend would add RM615 to your savings without you doing anything. As your balance grows through monthly contributions and dividends, future dividends are calculated on a larger amount. Over many years, this compounding effect (where dividends are earned on a growing balance, not just your original contributions) means your savings grow faster than the contributions alone would suggest.

All Three Accounts Earn Dividends

Akaun Persaraan, Akaun Sejahtera, and Akaun Fleksibel all earn the same annual dividend declared by EPF. The rate applies to whatever balance remains in your account at the time of calculation.

Simpanan Konvensional vs Simpanan Shariah

When you join EPF, you choose between two savings options: Simpanan Konvensional and Simpanan Shariah.

Simpanan Konvensional is EPF's standard option. Simpanan Shariah invests your savings according to Syariah principles, meaning the fund avoids riba (interest-based financial instruments, which are prohibited in Islam) and industries such as gambling, tobacco, alcohol, and conventional financial services.

Both options have declared the same dividend rate in the last two years. Before that, Simpanan Shariah came in below Simpanan Konvensional every year from 2019 to 2023, with the gap reaching 0.60 percentage points in 2022. The table above shows the full comparison. The key difference in terms of the guarantee is that the EPF Act 1991 provides a legal minimum annual dividend of 2.5% for Simpanan Konvensional only. Simpanan Shariah does not carry the same legal guarantee, and its declared dividend has historically varied from the conventional rate. In theory, the Simpanan Shariah rate could come in below 2.5% in a poor investment year.

Since April 2025, the effective date moved from annual to monthly, so the switch now takes effect on the first of the month following your registration. Once it takes effect, you cannot revert to Simpanan Konvensional. You can cancel your registration before the effective date, but after that point the decision cannot be undone.

Muslim members considering the switch should also be aware that Simpanan Konvensional dividends earned before switching may need to be purified (channelled to Baitulmal or given to the needy) since a portion comes from non-Syariah-compliant investments. The purification rate for 2025 Simpanan Konvensional dividends was 60% of total dividends received. EPF publishes the rate each year on kwsp.gov.my. If you are considering the switch, read the full terms on the Simpanan Shariah page before registering through i-Akaun.

Withdrawing Your EPF Savings

Although EPF is a retirement savings scheme, you don't have to wait until age 55 to access all of your savings. Whether you can make a withdrawal depends on which EPF account the money is in and the reason for the withdrawal.

Akaun Fleksibel Withdrawals

Akaun Fleksibel is the most accessible of the three accounts. Once you meet EPF's minimum withdrawal requirement of RM50, you can apply through i-Akaun without providing a specific reason. Approved applications are credited to your bank account within three working days.

Because every withdrawal reduces the amount earning future dividends, Akaun Fleksibel is generally best reserved for genuine short-term financial needs.

Akaun Sejahtera Withdrawals

Unlike Akaun Fleksibel, withdrawals are only allowed for specific purposes approved by EPF.

Each withdrawal type has its own eligibility requirements and supporting documents. Check the latest conditions through i-Akaun or the EPF website before applying.

Withdrawing EPF At 55

When you turn 55, you can withdraw your EPF savings in full or leave them invested to continue earning annual dividends.

At this stage, your three accounts are consolidated into Akaun 55 and Akaun Emas, and the earlier three-account allocation no longer applies. You don't have to withdraw everything immediately. Some members choose to leave part or all of their savings in EPF to continue earning dividends after retirement.

Withdrawing EPF Before 55

Full withdrawals before age 55 are only allowed under limited circumstances:

• permanently leaving Malaysia, subject to EPF's eligibility rules
• permanent incapacity that prevents you from working
• death, where your savings are paid to your nominated beneficiaries

If you're leaving Malaysia permanently, the rules differ depending on your citizenship and residency status. Read What Happens To Your EPF When You Leave Malaysia Permanently for the full details.

From 2026, members with savings above a certain threshold can also make a partial withdrawal of the excess before turning 55. The threshold is RM1.1 million in 2026, rising to RM1.2 million in 2027 and RM1.3 million in 2028. Only the amount above the threshold can be withdrawn, not the full balance. This mainly affects high-balance members.

EPF also provides two one-off assistance payments separate from your savings balance.

If you pass away before the age of 60, your eligible next-of-kin may receive an RM2,500 Death Assistance payment from EPF. The payment is available to the deceased member's dependents: widow or widower, children, or parents, depending on the member's marital status at the time of death. A remaining balance must exist in the account at the time of application. The next-of-kin must submit a Death Withdrawal application at any EPF office or by mail within six months of the member's death.

If you qualify for an Incapacitation Withdrawal because a medical condition permanently prevents you from working, EPF may award a separate RM5,000 Incapacitation Benefit at its discretion. Neither the Death Assistance nor the Incapacitation Benefit is guaranteed. Both are subject to EPF's eligibility conditions. For current details, check kwsp.gov.my.

Voluntary EPF Contributions

You don't need to work for an employer to save with EPF. If you're self-employed, freelancing, running a business, driving for an e-hailing platform, or earning income through the gig economy, you can contribute voluntarily and earn the same annual dividends as salaried employees. Depending on the scheme you join, you may also qualify for government incentives.

i-Saraan

i-Saraan is open to Malaysians under the age of 60 who earn their own income. You decide how much and how often to contribute, with no fixed monthly amount required. The government matches 20% of your total annual contribution, up to RM500 a year. To receive the full RM500, you need to contribute at least RM2,500 during the year. The lifetime government incentive is capped at RM5,000, or until you reach age 60, whichever comes first.

The government's 20% match means every RM2,500 you put in becomes RM3,000 before dividends.

i-Saraan Plus

i-Saraan Plus works similarly to i-Saraan but is built for eligible workers on participating e-hailing and p-hailing platforms such as Grab, inDrive, and Lalamove. It launched on 1 January 2026 as part of EPF's policy enhancements under Budget 2026.

The government incentive is up to RM600 a year, with a lifetime cap of RM6,000. To receive the full RM600, you need to contribute at least RM3,000 during the year. Platform providers manage registration and contribution deductions, so there isn't much you need to do beyond signing up through your platform.

i-Suri

i-Suri is available to eligible housewives registered under e-Kasih, the government's national database for low-income households maintained by the Economic Planning Unit.

The government matches 50% of what you contribute, up to RM300 a year. To receive the full RM300, you need to contribute at least RM600 that year. The lifetime incentive is capped at RM3,000, or until you turn 60.

Choosing Your EPF Scheme

All three schemes earn the same annual EPF dividend. The government's contribution is credited directly into your EPF account.

One limit applies across all voluntary contribution schemes. The combined total of i-Simpan, i-Saraan, i-Saraan Plus, i-Suri and Akaun Persaraan Top-Up Savings contributions cannot exceed RM100,000 per year. This is an aggregate cap, not a separate limit for each scheme.

Managing Your EPF Savings

With the KWSP i-Akaun app or the member portal at iakaun.kwsp.gov.my, you can check your EPF balance, view your contribution history, see how much you have in each account, apply for Akaun Fleksibel withdrawals, download your annual statement, update your personal details, and manage your EPF nomination.

Some withdrawal applications require thumbprint verification. If it's your first time withdrawing online, or if your withdrawal amount exceeds RM30,000, you may need to visit the nearest EPF office to verify your identity in person. For some services, EPF also offers e-KYC (electronic identity verification via facial recognition in the KWSP i-Akaun app) as a digital alternative. Check whether it is available for your specific withdrawal type before making the trip. Check the latest requirements on the EPF website before submitting. The EPF Contact Centre is at 03-8922 6000.

What To Do If Your Employer Is Not Paying

Your employer is required to pay both your share and theirs to EPF by the 15th of every following month. If your January salary was paid in January, for example, contributions must reach EPF by 15 February.

Check your contribution history in i-Akaun every month. If a month is missing or the amount looks wrong, contact your employer first to confirm whether the payment was made. If your employer can't explain the discrepancy, lodge a complaint with EPF. Bring your offer letter, payslips, and any other proof of employment to any EPF office. You can also call 03-8922 6000 or submit a complaint through kwsp.gov.my.

EPF takes contribution arrears seriously. In 2025, EPF barred 2,257 company directors from leaving the country, filed 3,530 civil suits, and took criminal action in 6,011 cases against employers who failed to remit contributions (EPF enforcement announcement, March 2026). The law allows EPF to pursue employers directly for unpaid contributions, so your savings aren't lost even if your employer has defaulted. But you need to report it for EPF to act.

Your EPF Nomination

Your EPF savings don't automatically go to your family if you pass away. By making a nomination, you tell EPF who should receive or administer your savings after your death. For non-Muslim members, the nominee receives the savings as the beneficiary. For Muslim members, the nominee acts as a wasi, who administers the money and distributes it according to faraid (Islamic inheritance law).

Your nomination is separate from your will. If your personal circumstances change, such as getting married, getting divorced, or having children, review both to make sure they still reflect your wishes. You can update your nomination through i-Akaun or at any EPF branch. It takes about five minutes through i-Akaun. If you have never set one up or want to understand how the Muslim and non-Muslim rules differ, Have You Filled Out Your EPF Nomination Form? covers the full process.

EPF And Income Tax Relief

EPF contributions qualify for income tax relief up to RM4,000 a year. For most salaried employees, mandatory contributions alone already exceed that cap. The annual EPF dividend is also fully tax-exempt, so you pay no income tax on the dividend credited to your account each year.

LHDN sets two separate relief limits. Your own EPF contributions qualify for up to RM4,000 per year. Life insurance and takaful premiums qualify for up to RM3,000 per year. These are separate categories with their own caps, not a shared pool.

For most full-time employees, the RM4,000 EPF relief is already maxed out through mandatory contributions alone. At 11%, anyone earning above roughly RM3,030 a month contributes more than RM4,000 a year. On a RM4,000 salary, the RM440 monthly contribution comes to RM5,280 a year, which exceeds the cap entirely. You don't need to do anything extra to claim it. The relief applies automatically when you file your tax return.

You claim both reliefs when filing your annual income tax return through LHDN's MyTax portal. The limits are set annually, so check the latest figures published by Lembaga Hasil Dalam Negeri (LHDN) before filing.

What To Check Now

Before you close this tab, do these four things.

• Check your nomination. Log into i-Akaun and confirm your nominated beneficiary reflects your current situation. It takes five minutes and is easy to overlook until it matters.
• Check which savings option you're on. If you've never switched, you're on Simpanan Konvensional by default. If you're considering Simpanan Shariah, read the dividend table and the switching terms before deciding. The switch is permanent.
• Check whether you qualify for i-Saraan. If you're self-employed, freelancing, or doing gig work, you're likely leaving a 20% government incentive unclaimed every year.
• Check your Akaun Fleksibel balance. If you joined before May 2024 and didn't transfer during the opt-in window, your balance may be lower than you expect. Only contributions from May 2024 onwards flow in at 10%.

Frequently Asked Questions

What happens to my EPF savings if I die without a nomination?

If you pass away without a valid EPF nomination, your savings can't be paid directly to your family. EPF will release the savings to an appointed executor, trustee, or administrator, which typically means going through the courts or estate administration process. It can take one to three years before your family receives anything. Making a nomination takes about five minutes through i-Akaun and avoids that process entirely.

Can I check the balance in each EPF account separately?

Yes. Log in to i-Akaun to view the balances in Akaun Persaraan, Akaun Sejahtera and Akaun Fleksibel individually. If you're 55 or above, you will see Akaun 55 and Akaun Emas instead.

What happens to my EPF if I change jobs?

Your EPF account stays the same. Your new employer simply starts contributing to your existing account, so you don't need to register again or transfer your savings.

Can I contribute more than the mandatory amount?

Yes. You can make voluntary contributions in addition to your mandatory employee contribution. Your employer isn't required to match any voluntary amount you contribute.

Can I withdraw my entire EPF balance before age 55?

Full withdrawal is only allowed under three circumstances: permanently leaving Malaysia, qualifying for an incapacitation withdrawal, or in the event of death. From 2026, members whose total EPF balance exceeds RM1.1 million can also make a partial withdrawal of the excess amount before turning 55. The threshold rises to RM1.2 million in 2027 and RM1.3 million in 2028. This is a partial withdrawal of the excess only, not a full withdrawal.

I am not Malaysian. Do I need to contribute to EPF?

It depends on your status. Permanent residents (PRs) contribute at the same rates as Malaysian citizens: 11% employee, 13% or 12% employer depending on salary. For other foreign employees, mandatory contributions of 2% each for employee and employer apply from October 2025 if you hold a valid passport and an employment pass issued by the Immigration Department of Malaysia (domestic workers excluded). This was confirmed in the EPF's official announcement.