Savings: Types of Contribution

EPF members in the private and non-pensionable public sectors contribute to their retirement savings through monthly salary deductions by their employers. These contributions, comprising the member’s and employer’s share, will be credited into the member's EPF account.

How Will Your Contribution Be Credited?

Mandatory contribution will be credited according to the following breakdown:

Akaun Persaraan

75%

Akaun Sejahtera

15%

Akaun Fleksibel

10%

Members who have reached the age of 55 will have two accounts:

Akaun 55 is a combination of Akaun Persaraan, Akaun Sejahtera, and Akaun Fleksibel that can be withdrawn once a member reaches 55 years old.
Akaun Emas is an account that exists after a member reached 55 years old. Any contribution after the age 55 will be credited into this account and can only be withdrawn once the member reaches 60 years old.

Payment Liable For EPF Contribution

Wages

Payment for unutilised annual or medical leaves

Bonus

Allowance

Commission

Wages for half day leave

Incentive

Arrears of wages

Wages for maternity leaves

Wages for study leaves

Other payments under services contract or otherwise

Payments Not Liable For EPF Contribution

Service charge

Overtime payment

Gratuity

Retirement benefit

Retrenchment, temporary lay-off or termination benefit

Any travelling allowance or the value of any travel concession

What You Need To Know

Mandatory contribution is calculated based on the member's monthly salary according to the Contribution Rate (Third Schedule). This consists of both the employer's and employee's shares.

Mandatory Contribution Accordion

Employee Contribution Rates

Monthly Contribution Rate
(Third Schedule)

For those who would like to know more about their contribution rate, you can view the rates below (up to the age of 60).

View Rate

Frequently Asked Questions

Frequently Asked Question

FAQ - Mandatory Contribution

1. How can I check my contribution?

You can check the contribution deductions in your EPF statement or via KWSP i-Akaun. Make sure your contributions are correctly credited to your account.

2. When are my contributions paid?

Your share of contribution, along with the employer’s share of contribution, must be paid by your employer to the EPF no later than the 15th of the following month. Employers will be fined for late payment.

3. What if I do not wish to contribute?

Contributing to the EPF is mandatory, and any attempt to collude with your employer to avoid these contributions is prohibited by law.

4. How can I prove that my employer has deducted my salary for EPF contributions?

Through your salary slip provided by your employer. You are advised to keep your salary statement for the purpose of proving the contribution payment.

5. How will I know if my contributions have been deducted and paid accordingly?

It is your responsibility to review your salary slip and EPF Statement to ensure that your contributions have been paid and credited accordingly.

Should you find arrears or difference in the contributions you received, please lodge a complaint to EPF.

6. How can I get my EPF Statement?

You can obtain your EPF Statement via i-Akaun or any EPF Self-Service Terminal (SST).

7. Under what circumstances will my EPF savings be forfeited?

Member's EPF savings are not assignable, transferable, liable to be attached, sequestered, levied upon, for, or in respect of, any debt or claim including by the Director General of Insolvency. However, member’s savings protection can be forfeited in the event of a court order under the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001 (Act 613).

8. What are the terminologies for contribution that I should know?

Member

According to the EPF Act, an EPF member is defined as any individual who has an account and savings with the EPF. EPF members include employees working in the private sector, non-pensionable employees working in the public sector, and those who have opted to contribute voluntarily.

Employee

You are an employee if you are employed by an employer under a contract of service or apprenticeship.

Contract of Service

A Contract of Service is a set of terms that describe the relationship between an employer and employee. Among the key factors that define this contract are the existence of an offer and acceptance of the contract, supervision and control of work by the party offering employment, monetary compensation and the promise to provide services that cannot be replaced by others. The Contract of Service may be written, verbal, expressed or implied.

Employer

An employer is defined as a person(s) with whom an employee has a contract of service or apprenticeship.

Employers include:

Managers, agents or persons responsible for the payment of salary or wages to an 'employee'
Any group of people whether or not statutory or incorporated
Any government, government departments, statutory bodies, local authorities or other bodies specified in the Second Schedule, EPF Act 1991