What Is EPF?
EPF — the Employees Provident Fund(Kumpulan Wang Simpanan Pekerja, KWSP) — is Malaysia’s mandatory retirement savings scheme. Established under the EPF Act 1991, it requires most private sector employees and their employers to contribute a portion of monthly salary into individual EPF accounts.
Contributions earn annual dividends based on EPF’s investment returns, and the balance grows tax-free. Unlike a pension, your EPF savings belong to you personally — the total accumulated balance is yours to withdraw at retirement.
2024 Contribution Rates
| Employee Age | Employee | Employer (≤ RM5k salary) | Employer (> RM5k salary) |
|---|---|---|---|
| Below 60 | 11% | 13% | 12% |
| 60 and above | 5.5% | 6% | 6% |
Key point: The employer’s contribution is paid on top ofyour salary — it does not reduce your take-home pay. Only the employee’s 11% is deducted from your gross salary.
The New 3-Account Structure (2024)
Starting 2024, EPF restructured savings from the traditional two-account system (Account 1 and Account 2) into three accounts:
75%
Akaun Persaraan
Core retirement savings. Locked until age 55. Cannot be withdrawn early for housing or other purposes.
15%
Akaun Sejahtera
Flexible savings. Withdrawable for housing, education, healthcare, or hajj.
10%
Akaun Fleksibel
Fully accessible. Can be withdrawn at any time, for any purpose — with a minimum notice period.
This restructuring protects the bulk of retirement savings (75%) while giving members more flexibility with 10% that can be freely accessed.
EPF Basic Savings Benchmarks
EPF publishes Basic Savings — minimum recommended Akaun Persaraan balances at each age milestone, calibrated to provide roughly RM1,000/month for 20 years in retirement:
Age 30
RM 10,000
Age 35
RM 25,000
Age 40
RM 50,000
Age 45
RM 90,000
Age 50
RM 150,000
Age 55
RM 240,000
These are minimum benchmarks. With rising life expectancy and living costs, financial planners typically recommend targeting 2–3× these amounts for a comfortable retirement.
EPF Dividend History (2016–2023)
| Year | Conventional Portfolio | Shariah Portfolio |
|---|---|---|
| 2023 | 6.10% | 5.40% |
| 2022 | 5.35% | 4.75% |
| 2021 | 6.10% | 5.65% |
| 2020 | 5.20% | 4.90% |
| 2019 | 5.45% | 5.00% |
| 2018 | 6.15% | 5.90% |
| 2017 | 6.90% | 6.40% |
| 2016 | 5.70% | 5.70% |
When Can You Withdraw from EPF?
- Age 55 (Akaun Persaraan): Full withdrawal of Akaun Persaraan is allowed at age 55. You can choose to withdraw all at once or leave the balance to continue earning dividends until age 60.
- Before 55 (Akaun Sejahtera): Approved pre-retirement withdrawals from Akaun Sejahtera: housing loan purchase or redemption, children’s higher education, medical expenses (self, spouse, children, parents), hajj pilgrimage.
- Akaun Fleksibel: Anytime, for any reason.
- Incapacitation or death: Full withdrawal allowed regardless of age.
- Leaving Malaysia permanently: Full withdrawal allowed for non-citizens and Malaysians who have renounced citizenship.
Voluntary Contributions and EPF i-Saraan
Self-employed individuals, freelancers, and gig workers can contribute voluntarily to EPF through the i-Saraan scheme. The government provides a co-contribution incentive of up to RM500/year for eligible i-Saraan members earning below RM100,000/year. All contributions earn the same dividend rate as regular members.
Project Your EPF Retirement Balance
Enter your current age, salary, existing balance, and annual increment to see a year-by-year projection of your EPF savings with dividend compounding.
EPF Calculator Malaysia →Related Guides and Calculators
- EPF Calculator Malaysia — year-by-year retirement projection
- Salary Calculator Malaysia — see EPF deductions on your payslip
- How to Calculate Salary After EPF — full payslip breakdown
- Income Tax Calculator Malaysia — EPF relief up to RM4,000