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EPF: Types of Contribution
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EPF (Employees Provident Fund) or KWSP (Malay: Kumpulan Wang Simpanan Pekerja) is a & #39;federal statutory body under the purview of the Ministry of Finance& #39;.
EPF manages the compulsory retirement savings and retirement plans for al working Malaysians in the private sector.
EPF manages the compulsory retirement savings and retirement plans for al working Malaysians in the private sector.
The types of contributions are:
- Mandatory Contribution
- Voluntary Contribution
- Mandatory Contribution
- Voluntary Contribution
MANDATORY CONTRIBUTION
Full time employees in the private sector are under mandatory contribution. Mandatory contributions are made up of both employers and employees %)
Employee& #39;s Contribution (deducted from monthly salary)
11%-old share percentage
7%-new share percentage
Full time employees in the private sector are under mandatory contribution. Mandatory contributions are made up of both employers and employees %)
Employee& #39;s Contribution (deducted from monthly salary)
11%-old share percentage
7%-new share percentage
Employer& #39;s Contribution (paid by company/employer)
13%-for monthly salaries of RM5,000 and below
12%-for monthly salaries of more than RM5,000
Mandatory contributions are made up of both shares and paid by your employers on a monthly basis.
13%-for monthly salaries of RM5,000 and below
12%-for monthly salaries of more than RM5,000
Mandatory contributions are made up of both shares and paid by your employers on a monthly basis.
For example, if your fixed salary is RM2,500/month, your monthly EPF contributions are:
Employee& #39;s contribution of 11%-RM275
Employer& #39;s contribution of 13%-RM325
Total Monthly Contribution-RM600
Your employer will make the contribution of RM600/month into your EPF account.
Employee& #39;s contribution of 11%-RM275
Employer& #39;s contribution of 13%-RM325
Total Monthly Contribution-RM600
Your employer will make the contribution of RM600/month into your EPF account.
VOLUNTARY CONTRIBUTION
The types of voluntary contributions are:
1) self contribution
2) i-Saraan
3) i-Suri
4) Top-up Savings Contribution
The types of voluntary contributions are:
1) self contribution
2) i-Saraan
3) i-Suri
4) Top-up Savings Contribution
There is no limit to how much you can contribute as it is considered a voluntary contribution. There is, however, a maximum amount to how much you can contribute in a year.
All voluntary contributions are capped at RM60,000 yearly.
All voluntary contributions are capped at RM60,000 yearly.
1) Self-Contribution
Requirements: Malaysian citizen & registered EPF member
Tip: for those under mandatory contribution, you can also do voluntary self contribution every month to your EPF account
If you are an online seller/small business owner, you can also make use of this
Requirements: Malaysian citizen & registered EPF member
Tip: for those under mandatory contribution, you can also do voluntary self contribution every month to your EPF account
If you are an online seller/small business owner, you can also make use of this
but, there is a new incentive by EPF called i-Saraan.
2) i-Saraan
a retirement incentive introduced to self-employed individuals who are not earning a regular income. The incentive allows them to make voluntary contributions for their retirement fund.
2) i-Saraan
a retirement incentive introduced to self-employed individuals who are not earning a regular income. The incentive allows them to make voluntary contributions for their retirement fund.
online sellers and small business owners can sign up for i-Saraan account and build their retirement fund.
Some benefits of the i-Saraan incentive:
-any amount can be contributed (max: RM60k/year)
-EPF dividend
-receive 15% (max RM250) government contribution yearly
Some benefits of the i-Saraan incentive:
-any amount can be contributed (max: RM60k/year)
-EPF dividend
-receive 15% (max RM250) government contribution yearly
Requirements for i-Saraan
1) Malaysian citizen under the age of 55
2) Registered EPF member
3) Self-employed and do not earn a regular income
1) Malaysian citizen under the age of 55
2) Registered EPF member
3) Self-employed and do not earn a regular income
All voluntary contributions can be done online through Internet Banking, or cash/cheque through EPF Counters and Bank Agent Counters.
Maximum: RM60,000/year
Maximum: RM60,000/year
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