explainer

EPF (KWSP) explained

EPF (Employees Provident Fund, or KWSP) is Malaysia's mandatory retirement savings scheme. Both you and your employer pay in every month.

Updated 30 June 2026 · KWSP (Employees Provident Fund)

Contribution rates

Employee: 11% of monthly salary (statutory rate, citizens under 60).

Employer: 13% if your salary is RM5,000 or below, or 12% if above RM5,000.

That's a total of about 23–24% of your salary going into EPF each month.

The dividend

EPF pays an annual dividend on your savings. For 2026 the dividend is 6.30%. By law, EPF guarantees a minimum of 2.5% per year — but actual rates have historically been higher.

Your three accounts

Since 2024, EPF savings are split into three: Akaun Persaraan (75%, locked for retirement), Akaun Sejahtera (15%, for housing, health and education) and Akaun Fleksibel (10%, which you can withdraw anytime).

Common questions

What is the EPF contribution rate in Malaysia?

Employees contribute 11% of salary; employers contribute 13% (salary ≤ RM5,000) or 12% (salary > RM5,000). Total around 23–24%.

What is the EPF dividend for 2026?

The EPF dividend for 2026 is 6.30%. EPF guarantees a minimum dividend of 2.5% per year.

How much does the employer contribute to EPF?

13% if your monthly salary is RM5,000 or below, or 12% if it is above RM5,000.

What are the EPF account types?

Akaun Persaraan (75%, for retirement), Akaun Sejahtera (15%, for housing/health/education) and Akaun Fleksibel (10%, withdrawable anytime).

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