Last updated : 22 Feb 2020    

EPF- mandatory contribution retirement savings

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. In this section, you will learn more about this deduction and what it means to you.

Mandatory Contribution

Your mandatory contribution is calculated based on your monthly salary as an employee in accordance with the Contribution Rate (Third Schedule). Monthly contributions are made up of the employee’s and employer’s share which is paid by the employer through various methods available to them.

 

 

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).

Check your salary slip

Your employer is required to provide you with a salary slip every month. This will enable you to ensure your salary has been correctly deducted and also serve as proof of your EPF contributions. You are advised to keep and check your salary slips throughout your employment.

This slip should contain the following information:

  • Full name
  • EPF membership number
  • Gender
  • Identification card number
  • Passport/Citizenship number
    (if you are not a Malaysian citizen)
  • Salary payment period
  • Salary amount
  • Other remunerations for the period
  • Amount of employee and employer's share of the EPF contributions
  • Employer's reference number
  • Full name of employer/employer's representative, signature and date of issue of slip
  • Salary payment methods (daily/weekly/monthly)
  • Date salary is paid

Members can check their contributions through Account Statement in i-Akaun to ensure contributions have been credited accordingly.

Payments Liable For EPF Contribution, Such As

EPF- liable salary wages money

Salary

EPF- unutilised annual medical leave money

Payment for unutilised annual or medical leave

EPF- payment bonus

Bonus

EPF- payment allowance money

Allowance

EPF- payment contribution commission money

Commission

EPF- payment wages salary half day leave

Wages for half day leave

EPF- payment incentive money

Incentive

EPF- payment arrears wages

Arrears of wages

EPF- wages salary maternity leave pregnant

Wages for maternity leave

EPF- wages salary study leave

Wages for study leave

EPF- wages salary

Other payments under services contract or otherwise

Payments Not Liable for Contribution

EPF- payment service charge

Service charge

EPF- payment over time

Overtime payment

EPF- payment gratuity money

Gratuity

EPF- retirement benefits money

Retirement benefit

EPF- lay-off termination retrenchment money

Retrenchment, temporary lay-off or termination benefits

EPF- travel allowance

Any traveling allowance or the value of any travel concession

EPF- exempted payment othe renumeration

Any other remuneration or payment as may be exempted by the Minister

 

Dividend Rates

For all your contributions, the government guarantees a minimum paid dividend rate of 2.50% for Simpanan Konvensional.

Dividend rates for Simpanan Shariah will be based on actual performance of the EPF's shariah compliant investments.

 

Our Past Dividend Rates

Year Simpanan Shariah
(Per Annum)
Conventional Savings
(Per Annum)
2018 5.90 6.15
2017 6.40 6.90
2016 - 5.70
2015 - 6.40
2014 - 6.75

Check your statements

You can make sure all your details in your Account Statement or i-Akaun (Member) are correct such as:

  • Correct personal details such as name, identification card number and EPF membership number.
  • The monthly contributions correspond with your salary deductions.
  • Details of adjustment of account (if any).
  • Savings amount in Account 1 and Account 2 are correct.

 

Be A Smart Member

Take up your responsibility to ensure your credited contributions are correct every month. A smart member ensures all their contributions are in order by following our short checklist.

 

Check your contributions

You can determine that the contribution is in order by checking the contribution deduction using either your Penyata Ahli or Member (i-Akaun). You need to ensure that the right contributions have been credited into your account properly.

 

Salary slips

It is advisable that you check your monthly salary slips and to keep them safe throughout the period of your employment.

 

Should you find arrears or difference in your contributions, you should report below

Lodge A Contribution Complaint 

 

Get your employer to recover your contributions

If your employer fails to deduct your salary for EPF contributions at the time your salary is paid, your employer cannot recover the contributions from you after a period of six months. Under such circumstance, your employer has to pay for both the employee's and employer's shares as well as the dividends accrued to the EPF.

Download i-Akaun App today for easier access
 

A better tomorrow in your hands


 
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Dividend Rates

Year

Per Annum (Simpanan Shariah)

Per Annum (Simpanan Konvensional)

2017

6.40

6.90

2016

-

5.70

2015

-

6.40

2014

-

6.75

2013

-

6.35

2012

-

6.15

2011

-

6.00

2010

-

5.80

2009

-

5.65

2008

-

4.50

2007

-

5.80

2006

-

5.15

2005

-

5.00

2004

-

4.75

2003

-

4.50

2002

-

4.25

2001

-

5.00

2000

-

6.00

1999

-

6.84

1997 - 1998

-

6.70

1996

-

7.70

1995

-

7.50

1988 - 1994

-

8.00

1983 - 1987

-

8.50

1980 - 1982

-

8.00

1979

-

7.25

1976 - 1978

-

7.00

1974 - 1975

-

6.60

1972 - 1973

-

5.85

1971

-

5.80

1968 - 1970

-

5.75

1965 - 1967

-

5.50

1964

-

5.25

1963

-

5.00

1960 - 1962

-

4.00

1952 - 1959

-

2.50