Last updated : 16 May 2019    

Simpanan Shariah

The Simpanan Shariah is a savings option managed and invested by the EPF in accordance with Shariah principles.

To ensure that the Simpanan Shariah is managed in accordance with Shariah as required under section 43A of the EPF Act, a Shariah governance framework is established to govern the Shariah compliance aspects of the EPF Simpanan Shariah.

  • Why Simpanan Shariah?

    Muslim members:

    • To provide avenue for muslim members to have a Shariah-compliant retirement savings for their consumption including in performing Hajj (pilgrimage) and Umrah as well as for their family without any doubt on the source of fund.
    • o ensure members’ savings will not be used for purposes that contravene with Shariah principles, especially riba (interest), maysir (gambling) and gharar (uncertainty in contracts) often found in investments in conventional banking and insurance.
    • To enable members (upon death) to provide halal fund (i.e. members’ savings) to be distributed to the heirs as inheritance.

    Non-muslim members:

    A non-muslim member may opt for Simpanan Shariah as an alternative to Simpanan Konvensional:

    • Similar investment objective and risk profile.
    • Similar strategic asset allocation.
    • Only invest in ethical investments that are compliant with Shariah principles.
    • Minimum investment exposure to financial sector as opposed to Simpanan Konvensional.
  • Features
      Simpanan Shariah Simpanan Konvensional
    Membership All EPF members can choose to switch their account to Simpanan Shariah. All EPF members in default is Simpanan Konvensional, if they are still not opted to switch to Simpanan Shariah
    Akad (Shariah Contract) Subject to Akad Simpanan Shariah based on Wakalah contract Not applicable
    Dividend rate Dividend rate is based on actual performance of shariah-compliant investment Dividend rate is based on actual performance of the conventional investment (non shariah-compliant and shariah-compliant investments) and is subject to minimum dividend of 2.5%.
    Endorsement by the Shariah Advisory Committee (SAC) Endorsed by the EPF Shariah Advisory Committee (SAC) and subject to the Shariah Governance Framework Not applicable
    Account Conversion Members are not allowed to revert to Simpanan Konvensional after the effective date. Members may choose to switch from Simpanan Konvensional to Simpanan Shariah
  • How It Works
      Simpanan Shariah Simpanan Konvensional
    • At EPF Counters
    • The EPF Mobile Team
    • Online via i-Akaun
    • Automatically
    • At EPF counters
    • Using Employer i-Akaun
    • Through kiosk
    Contribution The current processes for contribution payment and enforcement remains. Employers are not required to make separate contribution payments for employees who chose Simpanan Shariah.
    Employers/Enforcement Defaulting employers regardless of whether their employees opted for Simpanan Shariah or not will be imposed with:
    • Late payment charges The lower dividend rate between Simpanan Konvensional and Simpanan Shariah for each respective year with an additional 1%. (Late payment charges replaces interest)
    • Dividend Rates will be based on the lower between the Simpanan Konvensional and Simpanan Shariah

    Prior to 2017, EPF dividend rates declared for each respective year shall be referred to for the calculation of late payment charges and dividend.
    Withdrawal Current withdrawal facilities remain except for Members Investment Scheme where members are only allowed to invest in shariah-compliant funds endorsed by the EPF Current withdrawal facilities remain
    Investment In addition to ethical investment practices, which refrain from investing in sectors that manufacture and promote alcohol , gambling, adult entertainment and military weapons.

    All investment assets will undergo Shariah screening process, that serves to eliminate non-Shariah compliant elements such as riba (interest/usury), gharar (uncertainty in contract), maysir (gambling) and other prohibited elements such as non-halal goods and services.
    Ethical investment practices, which refrain from investing in sectors that manufacture and promote alcohol , gambling, adult entertainment and military weapons.
  • Who Can Apply
    Who Can Apply

    Malaysians and Non-Malaysians

    Who Can Apply

    All religions

    Who Can Apply

    All races

  • What You Need
    • MyKad
    • Passport (Foreigners)
    • Mobile number must be registered for TAC
  • Where You Can Register
    • Register at EPF Counter and EPF Mobile Team
      • MyKad (Malaysians)
      • Passport (Foreigners)
    • Online Registration via i-Akaun
      • i-Akaun members
      • Mobile number must be registered for TAC
  • Important Notes
    1. Members are not allowed to re-opt for Simpanan Konvensional, after effective date of their Simpanan Shariah option.
    2. he dividend of Simpanan Shariah will be based on the actual performance of EPF’s Shariah-compliant investment and no guarantee of 2.5% minimum dividend.