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 Employees Provident Fund Act 1991, a Shariah governance framework is established to govern the Shariah compliance aspects of the EPF Simpanan Shariah.

Simpanan Shariah

Secure and Ethical Retirement Savings 

  • Have you paid the Zakat payment for EPF savings withdrawals? Get more information on the website of the Selangor Zakat Board (LZS) at, the MAIWP Zakat Collection Center (PPZ-MAIWP) at or the relevant state zakat authority.
  • Besides fulfilling EPF-related zakat, you can actively contribute to Zakat Fitrah, Zakat Property, Zakat Income, Zakat Savings, Zakat Gold, Zakat Silver, Zakat Livestock, Zakat Crops (Rice), Zakat Stocks, Zakat Business, and Qadha' Zakat. Let's proactively meet all our responsibilities.

Lembaga Zakat Selangor

The Lembaga Zakat Selangor (LZS) is determined to provide a comprehensive and continuous quality service for the collection and distribution of zakat based on Shariah law to meet the needs and satisfaction of customers. This agency operates with the objective of empowering zakat management, maximizing zakat collection and improving the effectiveness of zakat distribution.

Pusat Pungutan Zakat MAIWP

An exemplary Zakat Institution and becoming one of the socio-economic core of Muslims based on quality services, robust & viable corporate management, use of the latest technology, recruitment and development of human resources as well as close ties with all parties. This agency is committed to carrying out da'wah and promotional activities towards raising the awareness of Muslims about the obligation to pay zakat, collect zakat and manage the Zakat Collection Center on behalf of the Federal Territories Islamic Religious Council.

Why Simpanan Shariah?

Muslim Members:

  • To provide avenue for Muslim members to have Shariah-compliant retirement savings for their use, including for performing Hajj (pilgrimage) and Umrah as well as for their family without any doubt on the source of fund.
  • To 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:

  • Same investment objective and risk profile.
  • Same 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.


Simpanan Shariah Simpanan Konvensional
Who Can Apply
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Malaysian citizens or non-citizens
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All religions
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All races

What You Need & Where Can You Register

Register at EPF Offices, Mobile KWSP & Self- Service Terminals (SST)
  • MyKad (Malaysian citizens)
  • Passport (Non‑Malaysian citizens)
Online registration via i‑Akaun (Member)
  • Has access to i‑Akaun (Member) web portal or KWSP i‑Akaun app
  • Mobile number must be registered for TAC

Additional Information

Simpanan Shariah Important Note/ Akad Accordion

Frequently Asked Questions

Frequently Asked Question

Simpanan Shariah FAQ Accordion

What is the Dividend 2022 and 2023 rate for Simpanan Konvensional and Simpanan Shariah?

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Click here for Historical EPF Dividend Rates.

How do I register for Simpanan Shariah online?

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What are the facilities provided on Simpanan Shariah online?

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  • Simpanan Shariah online registration
  • Revocation of Simpanan Shariah (once only).
  • History of registration/revocation of  Simpanan Shariah
  • e-Akad Simpanan Shariah and e-Revocation Notice for Simpanan Shariah

If I have registered for Simpanan Shariah, either through online or counter, am I able to do online revocation? Will I be allowed to re‑register?

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  • Members who have registered for Simpanan Shariah either through online or counter are allowed to do online revocation only once (before the effective date).
  • Members who have revoked through online (before the effective date) and re‑registered for Simpanan Shariah, either through online or counter, revocation can only be done via EPF counter (before the effective date).

How will the effective date be determined?

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  1. Upon registration for Simpanan Shariah, members will receive a notification on the effective date of their Simpanan Shariah account.
  2. The effective date will be on 1st January of the year following the registration, subject to allocation of annual Shariah fund on first come first serve basis and any other conditions as determined by the Board.
  3. Members who failed to secure the effective date, due to insufficient fund allocation or registration after cut off date, will have to wait for the next annual Shariah fund allocation.

Can EPF members maintain both Simpanan Konvensional and Simpanan Shariah?

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No, EPF members can only have one account, either Simpanan Konvensional or Simpanan Shariah.

How is the dividend rate for Simpanan Shariah derived?

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The dividend for Simpanan Shariah is derived from realised Shariah-compliant 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) per cent dividend for Simpanan Shariah.

Why can’t Muslim members be registered to Simpanan Shariah by default?

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From Shariah perspective, a contract (akad) in a transaction must be concluded by mutual agreement to the terms and conditions by both contracting parties. For Simpanan Shariah, the wakalah contract is applied where EPF board has been appointed and entrusted to act on behalf of members to manage and invest their EPF savings in accordance with Shariah principles and applicable laws.

What is Simpanan Shariah Contract?

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The Akad (Shariah contract) for Simpanan Shariah is based on the wakalah contract, where the Board is appointed and entrusted to act on members’ behalf to manage and invest all credits (savings) in members’ account in accordance with the Shariah principles, the provisions under the EPF Act 1991, Regulations and EPF Rules and other resolutions from time to time. Learn more about Akad Simpanan Shariah.

Akad Simpanan Shariah

What are the features of Simpanan Shariah Contract?

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  1. Akad for Simpanan Shariah is based on wakalah contract endorsed by the SAC.
  2. The applied wakalah contract is categorized as wakalah mudhafah lil mustaqbal (agency contract that comes into effect in the future) i.e. Simpanan Shariah Account will come into effect on the effective date and not immediately upon Simpanan Shariah registration.
  3. The Board will manage Shariah Portfolio comprises of EPF Shariah-compliant investment assets for Simpanan Shariah.
  4. The Board will declare an annual dividend for Simpanan Shariah based on the actual performance of Shariah Portfolio allocated to Simpanan Shariah in proportion to its share in the portfolio i.e. realised Shariah-compliant investment income, and non-investment income after netting off expenses.
  5. EPF does not guarantee any minimum dividend rate for Simpanan Shariah as any guaranteed return by EPF as the fund manager is tantamount to usury(riba) that is prohibited by the Shariah. Nonetheless, both the Simpanan Shariah and Simpanan Konvensional share similar investment strategic targets to ensure capital preservation and value enhancement of members’ savings.

What is Shariah Compliant-Investment?

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  1. In addition to ethical investment practices, which refrain from investing in sectors that manufacture and promote alcohol, gambling, adult entertainment and military weapons, among others, 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.
  2.  To ensure end-to-end Shariah compliance, the SAC has set forth Shariah policies on compliance and monitoring of Shariah-compliant investments, which will be updated from time to time.
  3.  As the total EPF’s Shariah investment asset (Shariah Portfolio) is greater than the savings amount of Simpanan Shariah members, Simpanan Konvensional will also invest in the Shariah Portfolio.
  4.  Revenue generated from the Shariah Portfolio is allocated to Simpanan Shariah in proportion to its share in the portfolio.

What is Reclassification Of Shariah-Compliant Investment?

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  1. 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.
  2. 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.
  3. 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).
  4. 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.
  5. 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.
  6. 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.

What is Treatment Of Shariah Non-Compliant Income?

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  1. Shariah non-compliance income were 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.
  2. 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).
  3. 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.

Will the EPF pay zakat for members’ savings? Do I need to pay zakat for withdrawals made under Simpanan Shariah?

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  1. EPF will not pay zakat on its business nor zakat on EPF savings for muslim members as all investment of EPF are made of members savings that are yet to fulfill zakat requirement i.e. members do not have complete ownership (Milkut Tam) on their savings as they are not eligible to deal with it without any restriction from EPF.
  2. Muslim members are only liable to pay zakat on their EPF savings that are eligible to be withdrawn and used without any restriction i.e. having complete ownership (Milkut Tam), at the rate of 2.5%, subject to Nisab (minimum amount equivalent to the prevailing value of 85 grams of gold) as determined by the relevant states’ Zakat authority
  3. Types of withdrawal that are subject to zakat are:- 

          a.    Age 50 Years Withdrawal;
          b.    Age 55 Years Withdrawal;
          c.    Age 60 Years Withdrawal;
          d.    Leaving Country Withdrawal; 
          e.    Pensionable Employees Withdrawal And Optional Retirement Withdrawal; and
          f.    Withdrawal Of Savings Of More Than RM1 Million.

I am a Muslim member and have yet to switch to Simpanan Shariah. What are the percentage of Simpanan Konvensional dividends for year 2017 to year 2023 that need to be purified?

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Muslim members who have yet to switch to Simpanan Shariah are obliged to purify their Simpanan Konvensional dividend based on the percentage of income received from the conventional portfolio, which is 64% (2017), 68% (2018), 71% (2019), 69% (2020 & 2021), 73% (2022) and 66% (2023).

If I choose Simpanan Shariah, will my annual statement be different?

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No, members’ annual statement of account will remain the same. The annual statement will indicate members’ account status and Simpanan Shariah effective date.

Are there any changes to the nomination policy for Simpanan Shariah?

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Nomination policy for Simpanan Shariah members remains the same. Read more on Nomination.

Can I access my Simpanan Shariah via i-Akaun?

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Yes, members can access their Simpanan Shariah via i-Akaun.

Should I inform my employer if I choose Simpanan Shariah?

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No, members are not required to inform their employers if they choose Simpanan Shariah.

Are employers required to make separate contribution payments for employees who choose Simpanan Shariah?

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

Will there be two different Form A for employers to fill in? Is there any particular form for employers to complete?

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No, employers are only required to complete Form A as per existing process and there will be no additional forms for employers to complete or changes to be made.

Are there any new rules that employers need to comply with if their employees wish to choose Simpanan Shariah?

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

Will there be any additional costs incurred by employers if their employees wish to choose Simpanan Shariah?

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

Can I use my eligible Simpanan Shariah withdrawal amount to fund conventional housing loans?

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

Am I allowed to invest in conventional funds under the EPF Members' Investment Scheme (EPF-MIS) after switching to Simpanan Shariah?

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No, you are only eligible to invest in Shariah-compliant fund under the scheme after the effective date of your Simpanan Shariah account.

Do I need to redeem my existing investment in conventional fund under the EPF Members' Investment Scheme (EPF-MIS) made before effective date of my Simpanan Shariah account?

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

Are unit trust funds managed by Amanah Saham Nasional Berhad (ASNB) & Amanah Saham Bumiputera 2 (ASB2) Shariah compliant?Are members with Simpanan Shariah allowed to invest in unit trust funds managed by ASNB?

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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. Simpanan Shariah members 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.

How does the EPF ensure that Simpanan Shariah remains Shariah compliant?

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The EPF has established a comprehensive Shariah governance framework to ensure the operational and investment activities under the Simpanan Shariah adhere to the Shariah investment parameters endorsed by the EPF’s Shariah Advisory Committee (SAC). As part of the EPF’s commitment to corporate governance, the SAC will prepare and issue a report on Shariah compliance of Simpanan Shariah every financial year.