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Section 2: Work and Employment

Employees Provident Fund (EPF/KWSP)

Retirement savings, withdrawals, and account management

What is EPF?

EPF (Employees Provident Fund) or KWSP (Kumpulan Wang Simpanan Pekerja) is a retirement savings scheme for workers in Malaysia. A portion of your salary goes into your EPF account every month.

Who contributes?

You: 11% of your salary goes to EPF
Your employer: 12-13% of your salary goes to EPF
Both amounts go into YOUR account

When can you withdraw?

👴 Age 55 (full withdrawal)
🏠 To buy a house (Account 1)
🎓 For education (Account 2)
🏥 For medical treatment
✈️ When leaving Malaysia permanently

How to check your EPF:

Online: Register at kwsp.gov.my
App: Download i-Akaun app
Phone: Call 03-8922 6000
In-person: Visit EPF counter with IC

Important numbers:

EPF Hotline: 03-8922 6000
Website: kwsp.gov.my
WhatsApp: 017-555 9900

Overview

The Employees Provident Fund (EPF), known in Malay as Kumpulan Wang Simpanan Pekerja (KWSP), is a compulsory retirement savings scheme for employees in Malaysia. Established in 1951, EPF manages retirement savings for over 15 million members.

Contribution Rates (2026)

Monthly Salary	Employee Contribution	Employer Contribution
≤ RM5,000	11% (or 9% if opted)	13%
> RM5,000	11% (or 9% if opted)	12%
Foreign workers	11% (optional)	12%

Account Structure (Effective 2024)

Account 1 (75%) - Primary Account

For retirement
Can withdraw at age 55, 60, or 65
Limited withdrawal options before retirement

Account 2 (20%) - Secondary Account

For housing, education, medical
More flexible withdrawal options
Can be used for Account 1 purposes

Account 3 (5%) - Flexible Account (Akaun Fleksibel)

For any purpose
Can withdraw anytime
Minimum balance: RM500

How to Register for EPF

For Employees:

Your employer should register you within 7 days of employment
Fill Form KWSP 1 (Employee Registration Form)
Provide IC/passport copy
Receive your EPF number (starts with numbers, e.g., 1234567890)

For Self-Employed (Voluntary):

Visit nearest EPF branch
Fill Form KWSP 1A
Bring IC and proof of income
Start contributing at your chosen amount

Withdrawal Options

Full Withdrawal:

✅ Age 55 (50% Account 1 + all Account 2 & 3)
✅ Age 60 (remaining 50% Account 1)
✅ Leaving Malaysia permanently (after 1 year)
✅ Incapacitation (medical certification required)
✅ Death (by nominated beneficiaries)

Partial Withdrawal (Account 2):

🏠 House purchase or mortgage reduction
🎓 Education (member or children)
🏥 Medical treatment (critical illnesses)
👶 Maternity/paternity expenses
🕌 Hajj pilgrimage (up to RM10,000)

Flexible Withdrawal (Account 3):

Any purpose, anytime
Minimum withdrawal: RM50
Maintain minimum RM500 balance

How to Check Your EPF Balance

Online (i-Akaun):

Register at epf.gov.my
Click "Register" for i-Akaun
Enter EPF number, IC, and phone number
Receive activation code via SMS
Login and view your statement

Mobile App:

Download "i-Akaun" from App Store or Google Play
Register with your details
Check balance anytime, anywhere

Phone:

Call 03-8922 6000
Follow IVR instructions
Enter IC number and EPF number

In-Person:

Visit any EPF branch
Bring your IC
Request statement at counter or use kiosk

Recent Dividend Rates

Year	Conventional (%)	Shariah (%)
2025	5.50	5.40
2024	5.50	5.40
2023	5.35	5.25

Important Contacts & Resources

EPF Hotline: 03-8922 6000
Toll-Free: 1-800-88-7080
WhatsApp: 017-555 9900
Website: epf.gov.my / kwsp.gov.my
Email: callcentre@epf.gov.my
Operating Hours: Mon-Fri, 8:00 AM - 5:00 PM

Tips for Maximizing EPF

✅ Check your statement annually
✅ Update your nominee details
✅ Consider voluntary contributions for higher retirement savings
✅ Use Account 3 for emergencies only
✅ Don't withdraw early unless necessary
✅ Keep EPF number safe (needed for all transactions)

Frequently Asked Questions

Is EPF mandatory for all workers?

EPF is mandatory for Malaysian citizens and permanent residents employed in Malaysia. Foreign workers can contribute voluntarily. Self-employed individuals can join voluntarily under the i-Saraan program.

What happens to my EPF if I change jobs?

Your EPF account remains the same. Just provide your EPF number to your new employer. All contributions from different employers go into the same account.

Can I withdraw EPF if I'm unemployed?

No, unemployment alone is not a valid reason for EPF withdrawal. However, you can withdraw under the Flexible Account (Account 3) if you have funds there.

How do I nominate beneficiaries for my EPF?

Fill Form KWSP 4 at any EPF branch or update online via i-Akaun. You can nominate multiple beneficiaries and specify percentages. Update nominations after major life events (marriage, birth, death).

What is the minimum retirement savings EPF recommends?

EPF recommends having RM240,000 by age 55, which can provide approximately RM1,000 monthly for 20 years. However, the ideal amount depends on your lifestyle expectations.

Last updated: March 2026

Disclaimer: This guide provides general information only. Always verify with official sources for the most current information.