Personal Finance Term
Employees Provident Fund
Malaysia's mandatory retirement savings scheme for private sector employees, administered by KWSP (Kumpulan Wang Simpanan Pekerja). Both employee and employer contribute a percentage of monthly salary.
Employee contributions are split across three accounts: Akaun Persaraan (Account 1, 75% — retirement, cannot withdraw until 55), Akaun Sejahtera (formerly Account 2, 15% — housing, education, medical), and Akaun Fleksibel (Account 3, 10% — flexible withdrawal). Over 2016–2025 the EPF dividend ranged from 5.20% to 6.90% p.a. for Simpanan Konvensional; Simpanan Shariah ranged from 4.75% to 6.40% across 2017–2025 (its first declared year was 2017). The 2025 rate was 6.15% for both.
Employees earning below RM5,000/month contribute 11% of salary; above RM5,000 they may choose to contribute more. Employers contribute between 12%–13% depending on salary level. Total contribution (employee + employer) typically reaches 23%–24% of monthly salary.