The EPF is a social security institution formed according to the Laws of Malaysia, Employees Provident Fund Act 1991 (Act 452) which provides retirement benefits for members through management of their savings in an efficient and reliable manner. The EPF also provides a convenient framework for employers to meet their statutory and moral obligations to their employees.

Who Are Our Members?
Private and Non-Pensionable Public Sector employees. The EPF, as at 31st December 2008, has a total of 12.07 million members. The total number of active and contributing members is 5.7 million. The total number of active employers is 441,820.

Mandatory Contributions
A contribution constitutes the amount of money credited to members' individual accounts in the EPF. The amount is calculated based on the monthly wages of an employee. The current rate of contribution is 20% of the employee's wages of which 8% is from the employee's monthly wage while 12% is contributed by the employer.

Investment Allocation
Your monthly contributions are invested in a number of approved financial instruments to generate income. They include Malaysian Government Securities, Money Market Instruments, Loans & Bonds, Equity and Property.

Dividends
The EPF ensures that your savings are secure and receive reasonable dividends. In fact, it guarantees a minimum of 2.5 Per Cent Dividend annually. To ensure dividend payments, the EPF invests your contribution in approved financial instruments for optimum returns.

Dividends are paid annually into your account. The dividend rate declared by the EPF is subject to the returns from investments made in the approved instruments.

Annual Dividends, on the one hand, are calculated based on the opening balance of your savings as at 1 January of each year. Monthly Dividends credited into your account, on the other hand, are based on the monthly contributions received.