Simpanan Shariah is an EPF savings option where members’ savings are managed and invested according to shariah principles.

All EPF members are eligible to apply for Simpanan Shariah.

This includes:

• Malaysian citizens and non-Malaysian citizens
• Members of all religions
• Members of all races

Members can register for Simpanan Shariah through the following EPF channels:

• KWSP i-Akaun app
• i-Akaun (Member) web portal
• Self-Service Terminal (SST)
• Nearest EPF office

Members can manage their Simpanan Shariah through the KWSP i-Akaun online platform with the following facilities:

• Register for the Simpanan Shariah
• View the Simpanan Shariah effective date
• Download the Simpanan Shariah e-Akad
• Revoke the Simpanan Shariah election before the effective date (allowed once only)

• EPF does not automatically register Muslim members for Simpanan Shariah due to the provisions of the Federal Constitution.

• Members must voluntarily choose to register for Simpanan Shariah to provide explicit consent for the execution of the Akad Wakalah and acceptance of the applicable terms and conditions.

No. EPF members can only have one savings option at a time, either Simpanan Konvensional or Simpanan Shariah.

No. Members must read, understand, and provide consent to the Simpanan Shariah akad when registering for Simpanan Shariah. Registration cannot be completed without agreeing to the akad.

• The Akad for Simpanan Shariah is based on Akad Wakalah, where the member appoints EPF Board as a representative and trustee to manage the member’s entire EPF savings based on shariah principles, endorsed by Shariah Advisory Committee (SAC) based on provisions under the EPF Act 1991, Rules and Regulations, and other related provisions in force from time to time.
• The akad Wakalah used is categorised as Wakalah Mudhafah Lil Mustaqbal (representative which will be effective in the future), whereby the Simpanan Shariah election will be effective at a future date determined by EPF. 

• The Simpanan Shariah effective date is the date when a member’s EPF savings begin to be managed and invested according to shariah principles.

• The effective date is the 1st day of the following month after registration is completed, subject to the annual Simpanan Shariah fund allocation, the order of applications, and any other requirements determined by the EPF Board.

• Starting 1 April 2025, the Simpanan Shariah effective date has been enhanced from an annual basis (1 January each year) to a monthly basis.
• This means the effective date will now be the 1st day of the following month after registration, subject to terms determined by EPF.
• For registrations made during the last seven (7) days of the month, the effective date will move to the 1st day of the second month after registration.

Notes:
1. During the transition period until 31 March 2025, the Simpanan Shariah effective date follows the schedule shown in the table below:

2. From 1 April 2025 onwards, the effective date will be the 1st day of the month following the opt-in date, subject to a seven (7) day grace period:

3. Members will receive a notice of the Simpanan Shariah effective date at least seven (7) days before the effective date.

Once the Simpanan Shariah election becomes effective, all of the member’s EPF savings will be managed and invested by EPF in accordance with shariah principles.

Yes. Members may revoke their Simpanan Shariah election at any time before the effective date.

However, revocation is not allowed after the Simpanan Shariah effective date, in accordance with the applicable terms and conditions.

Members can revoke their Simpanan Shariah election before the effective date through the following channels:

• KWSP i-Akaun app
• i-Akaun (Member) web portal
• Self-Service Terminal (SST)
• Nearest EPF office

Notes:

• If members revoke their Simpanan Shariah election online before the effective date, they may register again for Simpanan Shariah through online channels or at an EPF office.
• Online revocation is allowed only once.
• If members register for Simpanan Shariah again, any subsequent revocation must be done at an EPF office before the effective date. 

Members may revoke their Simpanan Shariah election once through online channels before the effective date.

If members register for Simpanan Shariah again, any subsequent revocation must be done at an EPF office before the effective date.

The dividend rate for Simpanan Shariah is derived from realised Simpanan Shariah investment and non-investment income after netting off expenses. The realised net income is then divided by the amount required to pay for every 1% dividend for Simpanan Shariah.

The past Simpanan Shariah dividend rates announced by EPF can be found on the EPF dividend page.

Click here to view the historical dividend rates.

Muslim members who have not switched to Simpanan Shariah are obligated to purify the dividends received from Simpanan Konvensional. The purification amount is based on the percentage of shariah non-compliant investment income in the Simpanan Konvensional portfolio for each year, as shown in the table below.

Example: The calculation assumes RM1,000 of Simpanan Konvensional dividend received.

Notes:

• Dividend purification may be carried out using available EPF savings (if any) or other financial resources, and the amount should be contributed to Baitulmal or eligible recipients such as the poor.
• The decision to perform dividend purification is at the member’s discretion.
• Members are advised to seek guidance from the Majlis Agama Islam in their respective states.
• Please refer to Dividend Purification for Muslim Members for more information.

No. The member's EPF annual statement will remain the same. However, the statement will include the following details:

• Member account type
• Simpanan Shariah effective date
• Total dividend for Simpanan Shariah and Simpanan Konvensional (if applicable)

Yes. Members may use their Simpanan Shariah withdrawal amount to finance both conventional housing loans and Islamic housing financing, subject to the EPF housing withdrawal terms and conditions.

No. The nomination policy for members who have elected Simpanan Shariah remains the same as the existing nomination policy.

No. Registering for Simpanan Shariah is entirely the member’s choice, and there is no requirement to notify the employer.

No. Employers are not required to make separate contribution payments for employees who elect Simpanan Shariah. Employers only need to complete Form A as per the current process, and no additional forms or changes are required.

No. Employers remain subject to the existing EPF rules and regulations on contributions, and no additional requirements apply when employees elect Simpanan Shariah.

No. Employers will not incur any additional costs if their employees elect Simpanan Shariah.

Shariah-compliant investments are investments that must adhere to shariah principles as governed by the Shariah Governance Framework, which is approved and endorsed by the EPF Shariah Advisory Committee (SAC).

These investments avoid sectors and activities that are not permissible under shariah, including but not limited to those related to:

• Conventional banking and insurance
• Alcohol
• Tobacco and vape
• Gambling
• Adult entertainment
• Military weapons

All investment assets also undergo a shariah screening process to ensure they do not contain shariah non-compliant elements, such as:

• Riba (interest or usury)
• Gharar (uncertainty in contracts)
• Maysir (gambling)
• Non-halal goods and services

The Simpanan Konvensional portfolio may also invest in shariah-compliant investments. However, the portfolio itself is not governed by the shariah governance framework set by the SAC.

• EPF investments such as listed and private equity, real estate and infrastructure are subject to periodic shariah screening to review the shariah status of such investments.
• For investments in listed equities, shariah screening will be conducted based on the result of the periodic review by the Shariah Advisory Council of the Securities Commission Malaysia (SAC SC) on domestic equities and relevant shariah index providers for global equities.
• For investments in private equity, real estate and infrastructure, shariah screening will be conducted by EPF on an annual basis based on the shariah screening criteria and guidelines set by the SAC (EPF shariah screening).
• As a result of the shariah screening, if any of the above investment assets were excluded from the SAC SC’s list of shariah-compliant securities or relevant shariah indices or have failed the EPF shariah screening as the case may be, such assets will be reclassified as shariah non-compliant investments and will be manage in accordance to the Shariah investment policy as endorsed by the SAC.
• If any of the shariah non-compliant investment in the non-shariah portfolio have subsequently been reclassified as shariah-compliant, such assets will be transferred back to the shariah portfolio.
• For shariah mandate managed by external fund managers, any shariah-compliant instruments reclassified as shariah non-compliant will be disposed according to the guidelines set by the SAC SC.

Shariah non-compliant income refers to income that is derived directly or indirectly from Simpanan Shariah portfolio which is deemed to be shariah non-compliant income by the EPF Shariah Advisory Council (SAC).

Sources of shariah non-compliant income include:

• Excess gains from the reclassification of shariah-compliant equities into shariah non-compliant equities.
• Interest income from foreign conventional accounts related to shariah-compliant investments.
• Late payment charges, including the late payment charges on late contribution payment by employers

Late payment charges and/or dividends are imposed to protect the interests of EPF members. For Simpanan Shariah, the SAC allows these charges to be imposed as a deterrent and penalty to defaulters, either in the form of ta’widh (compensation) or gharamah (penalty above the ta’widh rate).

The ta’widh amount, as endorsed by the SAC, may be recognised as shariah-compliant income, while any excess amount will be recorded as shariah non-compliant income (NCI).

According to the SAC, shariah non-compliant income (NCI) may only be used for allowable expenses, such as charitable activities including:

• Death benefit payments
• Incapacitation benefit payments
• Invocation costs

Any excess NCI may then be used for operating expenditure and indirect investment expenditure.

• Beginning 1 January 2024, EPF has performed portfolio segregation between Simpanan Shariah and Simpanan Konvensional as a strategic measure to optimise returns from each portfolio in the long term with separate Strategic Asset Allocation.
• This serves as a proactive step to ensure there are diversification across assets classes, markets, countries and currencies to ensure optimum returns in both the Simpanan Shariah and Simpanan Konvensional portfolios.

No. Zakat payment is an individual responsibility, and EPF does not pay zakat on behalf of members.

Muslim EPF members are responsible for paying zakat on EPF savings that are eligible for withdrawal and use without restriction, meaning the savings are under complete ownership (Milkut Tam). Zakat is payable at a rate of 2.5%, subject to the nisab (the minimum amount equivalent to the current value of 85 grams of gold), as determined by the respective state zakat authorities.

Types of EPF withdrawals that are subject to zakat include:

• Akaun Fleksibel Withdrawal
• Age 50 Withdrawal
• Age 55 Withdrawal
• Age 60 Withdrawal
• Leaving Country Withdrawal
• Pensionable Employees Withdrawal and Optional Retirement Withdrawal
• More Than RM1 Million+ Withdrawal

No. Once you switch to Simpanan Shariah, you can only invest in shariah-compliant funds under the EPF Members’ Investment Scheme (EPF MIS). Investment in shariah non-compliant funds is not allowed after Simpanan Shariah takes effect.

No. You are not required to redeem or convert your existing investment in conventional funds made before the effective date of your Simpanan Shariah election into shariah-compliant funds.

• The 80th Muzakarah of the Fatwa Committee of the National Council for Islamic Religious Affairs Malaysia has resolved that investment in Amanah Saham Nasional (ASN) and Amanah Saham Bumiputera (ASB) schemes, including their dividends and bonuses, is permissible.
• EPF members who choose Simpanan Shariah may refer to the respective Fund Management Institutions and their appointed shariah advisers to confirm whether the funds offered are shariah-compliant.
• The EPF Shariah Advisory Committee does not endorse or certify the shariah compliance of listed unit trust funds.ompliance of the listed shariah-compliant funds. 
• The Shariah Advisory Committee of EPF shall not provide any endorsement on the listed shariah-compliant funds.

• EPF has established a comprehensive shariah governance framework to ensure that all operational and investment activities under Simpanan Shariah comply with shariah-compliant investment guidelines and parameters endorsed by the EPF Shariah Advisory Committee (SAC).
• As part of EPF’s corporate governance, the SAC also prepares and issues an annual Shariah governance statement for Simpanan Shariah and Shariah Advisory Commtittee report for each financial year.