• The Simpanan Shariah is a savings option for members that is 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 Employees Provident Fund Act 1991, Shariah Advisory Committee (SAC) is established by the Board. SAC is responsible to determine Shariah aspects and governance.

The Simpanan Shariah (savings) election is available to all EPF members, as outlined below:

• Malaysian citizens or non-Malaysian citizens
• All religions
• All races

 Members can register for Simpanan Shariah through the following channels:

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

The following online facilities are available in relation to Simpanan Shariah:

• Registration for Simpanan Shariah election
• Display of the Simpanan Shariah effective date
• Downloading of the e-Akad Simpanan Shariah
• Revocation of Simpanan Shariah prior to the effective date (permitted only once)

• Shariah Savings election is not automatically registered by KWSP for all Muslim members due to the provisions of the Federal Constitution.
• Additionally, by providing members the option to register for Simpanan Shariah, the Wakalah akad for Simpanan Shariah can be performed voluntarily with the members' consent to the terms and conditions.

No, EPF members can only have one type of savings option, either Simpanan Konvensional or Simpanan Shariah.

No, members must read, understand and provide their consent on the Simpanan Shariah akad upon registering for Simpanan Shariah.

• 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 syariah 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 categorized 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 refers to the date on which the members' entire EPF savings begin to be managed and invested in accordance with Shariah principles.
• The Simpanan Shariah effective date will be the 1st of the subsequent month following the completion of registration, subject to the annual Shariah fund allocation, the order of applications, and any other pre-requisite determined by the board.

• Starting 01 April 2025, Simpanan Shariah effective date has been enhanced from annual basis (1st January every year) to monthly basis (1st of subsequent month) from the date of registration, subject to terms determined by EPF.
• For the Simpanan Shariah registration done during the last 7 days of the month, the effective date will leap one (1) month from the registration date. 
  
  Notes:
  1. During the transition period until 31 March 2025, Simpanan Shariah effective date is as follows: 

  Num	Registration Date	Effective Date
  1	Members who register for Simpanan Shariah on 25 December 2024 until 24 March 2025	01 April 2025
  2	Members who register for Simpanan Shariah on 25 March 2025 until 31 March 2025	01 May 2025

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

  Num	Registration Date	Effective Date
  1	Members who register for Simpanan Shariah from 01 April 2025 until 23 April 2025	01 May 2025
  2	Members who register for Simpanan Shariah from 24 April 2025 until 30 April 2025	01 June 2025

  
  3. The notice on the effective date will be provided to members at least seven (7) days before the effective date.

When the Simpanan Shariah election becomes effective, all the member savings will be managed and invested by EPF in accordance with Shariah principles.

• Member can revoke the Simpanan Shariah election at any time before the effective date.
• The revocation of Simpanan Shariah election after the effective date is not allowed based on the terms and conditions.

The revocation of Simpanan Shariah election can be done via the channels below:

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

Notes:

• In the event members performed revocation via online (before the effective date), the member can register again for Simpanan Shariah through online channels or via EPF counter.
• The member is allowed to perform the revocation via online (before the effective date) only once.
• For members who register for Simpanan Shariah again, subsequent revocation can only be done via EPF counter (before the effective date).

Revocation is allowed as long as the member’s Simpanan Shariah election has yet to come into effect.

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 one (1) percent dividend for Simpanan Shariah.

Click here for Historical EPF Dividend Rates.

Muslim members who have yet to switch to Simpanan Shariah are obligated to purify the dividend obtained from Simpanan Konvensional based on the percentage of income received from the conventional portfolio, as per example below:

*Assuming that RM1,000 is the amount of dividend received

• Dividend purification can be carried out using available EPF savings (if any) or other financial resources and should be contributed to Baitulmal or those who are classified as poor.
• The decision to purify dividends is based on individual preference. Members are advised to seek guidance from the Majlis Agama Islam in their respective states. Please refer to Dividend Purification for Muslim members.

No, members’ annual statement of account will remain the same. Members annual statement will reflect the details below:

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

Yes, members can use their withdrawal amount to fund conventional housing loans and Islamic housing financing, subject to the housing withdrawal terms and condition.

The nomination policy for members who have elected for Simpanan Shariah is the same as the existing available policy.

No, Simpanan Shariah election is a decision made by the member (employee). Notification to the employer is not required.

No, employers are not required to make separate contribution payments on behalf of their employees who have elected Simpanan Shariah.

No, employers are only required to complete Form A as per current process and no additional forms or changes are required from employers.

No, employers are subject to the existing rules and regulations on contributions. 

No, there will be no additional costs incurred by employers if their employees wish to elect Simpanan Shariah.

• Apart from ethical investment practices, which refrain from investing in sectors that, among others, manufacture and promote alcohol, gambling, adult entertainment and military weapons, all investment assets will also undergo a Shariah screening process based on the Shariah criteria and guidelines set by the SAC, that serve 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.
• The Simpanan Konvensional portfolio will also be invested in Shariah-compliant investment. However, Simpanan Konvensional is not subject to the Shariah policy outlined by 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 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 transferred from the Shariah Portfolio to Non-Shariah Portfolio.
• Similarly, if any of the investment assets in Non-Shariah Portfolio has been reclassified as Shariah-compliant assets, such assets will be transferred 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-compliance income was derived from excess gain due to reclassification of Shariah-compliant equities into Shariah non-compliant equities, interest income from foreign conventional accounts of Shariah-compliant investments and late payment charges.
• Late payment charges and/or dividend are imposed on employers for late payment of contributions, and other parties for late payment of any financial obligation due to and payable to EPF, to safeguard the interest of EPF members. With regards to Simpanan Shariah, the SAC allows such charges to be imposed as deterrent and penalty to defaulters either in the form of ta’widh (compensation) or gharamah (penalty at the rate above the ta’widh rate). The ta'widh amount as endorsed by the SAC, may be recognized as Shariah-compliant income, while any excess amount will be recorded as Shariah non-compliant income (NCI).
• SAC has resolved that the NCI can only be utilised for allowable expenses i.e. charitable activities such as payments of death benefit, incapacitation benefit and invocation costs and any excess NCI may be utilised for operating expenditure and indirect investment expenditure.

Beginning 01 January 2024, EPF has performed portfolio segregation between Simpanan Shariah and Simpanan Konvensional as a strategic measure to optimize 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.

• The zakat payment is individual responsibility and EPF does not make zakat payment on behalf of the members.
• Muslim EPF members are liable for paying zakat on EPF savings that are eligible for withdrawal and use without any restrictions, i.e. have complete ownership (Milkut Tam) 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 withdrawal that are subject to zakat are:- 
  a. Flexible Account Withdrawal;
  b. Age 50 Years Withdrawal;
  c. Age 55 Years Withdrawal;
  d. Age 60 Years Withdrawal;
  e. Leaving Country Withdrawal; 
  f. Pensionable Employees Withdrawal and Optional Retirement Withdrawal; and
  g. Withdrawal Of Savings More Than RM1 Million.

No, members are only allowed to invest in Shariah-compliant funds after the effective date of Simpanan Shariah option.

No, you don't. You are not obliged to redeem or convert your existing investment in conventional fund into Shariah-compliant fund.

• The 80th Muzakarah (Conference) of the Fatwa Committee National Council of Islamic Religious Affairs Malaysia has resolved that investment in Amanah Saham Nasional scheme (ASN) and Amanah Saham Bumiputera scheme (ASB), including their dividend and bonus, is permissible. 
• EPF members who elected for Simpanan Shariah may refer to the respective Fund Management Institutions and their appointed Shariah adviser for any clarification on the Shariah compliance of the listed Shariah compliant funds. 
• The Shariah Advisory Committee of EPF shall not provide any endorsement on the listed Shariah compliant funds.

• The EPF has established a comprehensive Shariah governance framework to ensure the operational and investment activities under the Simpanan Shariah comply with the shariah compliant investment guidelines and parameters endorsed by the EPF’s Shariah Advisory Committee (SAC).
• As part of EPF's corporate governance requirement, the SAC will prepare and issue a report on Shariah compliance of Simpanan Shariah for each financial year.