EPF Guide 2026: Persaraan, Sejahtera & Fleksibel

EPF (Employees Provident Fund), or KWSP (Kumpulan Wang Simpanan Pekerja), is Malaysia's mandatory retirement savings scheme. If you're a Malaysian employee in the private or non-pensionable public sector, a portion of every salary you earn goes directly into your EPF account — automatically, before you even see your pay slip.

Here's what you need to know in 2026: how much goes in, where it sits, when you can touch it, and how to make it work harder for you.

Want to see where your own EPF could be at retirement? Run your numbers through the EPF calculator, which projects your balance with an adjustable dividend rate.

Last updated 17 October 2026 · money.com.my Editorial

The 3-Account Structure (Since May 2024)#

Before 11 May 2024, EPF operated with two accounts. Every new contribution was split 70% into Account 1 and 30% into Account 2. The restructure changed this significantly.

Since 11 May 2024, all new contributions are split across three accounts:

Account 1 — Akaun Persaraan (Retirement)#

This is the core of your retirement pot. 75% of every new ringgit contributed goes here, and it stays locked until you turn 55. You cannot touch it for housing, you cannot touch it for holidays — it is retirement money, full stop.

At 55, you can withdraw the full balance in a lump sum, or set up monthly payments. A partial withdrawal is also available from age 50 for certain scenarios.

The tradeoff for locking your money up is that Akaun Persaraan earns the EPF dividend — which has historically outperformed fixed deposits by a meaningful margin. More on this below.

Account 2 — Akaun Sejahtera (Wellbeing)#

15% of new contributions land here. This account gives you limited access for life's major expenses:

• Housing — down payment or monthly loan repayment via direct EPF deduction
• Education — for yourself or your children at approved institutions
• Health — critical illness or medical costs not covered by insurance (having a medical card reduces how often you need to tap this)
• Hajj — approved pilgrimage-related withdrawals (for Muslims)
• Disability — if you become permanently incapacitated

You cannot withdraw from Akaun Sejahtera on a whim. Each category has its own eligibility criteria and application process through the myEPF portal.

Account 3 — Akaun Fleksibel (Flexible)#

10% of new contributions go here, and this is the new one as of May 2024. Any EPF member aged 18 and above can withdraw from Akaun Fleksibel at any time, for any reason. No documentation required, no reason needed.

Key fact: Akaun Fleksibel only captures 10% of new contributions made from 11 May 2024 onwards. Existing savings in old Account 1 and Account 2 were not automatically redistributed — only the split going forward changed.

The flexibility of Akaun Fleksibel is genuinely useful. But it also means those funds aren't compounding for retirement. If you don't need the money urgently, leaving it in Akaun Fleksibel means it still earns the EPF dividend.

Contribution Rates#

Both employees and employers are required to contribute. The rates depend on the employee's age and salary band.

For Malaysian Citizens and Permanent Residents#

So on a RM4,000 salary: you contribute RM440, your employer contributes RM520 — a total of RM960 going into your EPF every month.

These rates apply to employees below age 60. Separate rates apply for members aged 60 and above (lower mandatory rates, though voluntary contributions remain possible).

For Foreign Workers#

Since October 2025 wages, EPF is compulsory for non-citizen employees too, at a lower rate:

• Employee: 2% of monthly wages
• Employer: 2% of monthly wages

It covers non-citizens below age 75 working in Malaysia on a valid passport and work pass, such as the temporary employment pass (PLKS) or an Employment Pass. Domestic servants (maids, cooks, gardeners, drivers and similar) are exempt, though they and their employers can choose to contribute. Contributions are worked out on at least the minimum wage rate. Before October 2025, employers did not have to contribute for non-citizen employees. Source: KWSP, contribution for non-Malaysian citizen employees.

EPF Dividend History#

EPF declares an annual dividend rate, which is credited to members' accounts. The rate is announced early each year for the prior financial year.

In 2024 the Shariah rate matched the conventional rate for the first time, and it did so again in 2025. Before that, Simpanan Shariah had always tracked slightly below Simpanan Konvensional.

Important caveat: Past dividend rates are not a guarantee of future returns. EPF invests across equities, fixed income, and real assets — the declared rate depends on investment performance each year.

For context, Bank Negara Malaysia's average 12-month fixed deposit rate at commercial banks was 2.22% p.a. in June 2026, and it ranged from about 2.2% to 2.9% between January 2023 and June 2026, and has not been at or above 3.0% since December 2019 (its peak since then was 2.90%, in May 2023). The series' latest month is June 2026. On 11 October 2026, 12-month board rates were 1.80% p.a. at Hong Leong, AmBank and RHB and 2.15% at BSN, and time-limited campaigns went up to 3.90% p.a. (our fixed deposit guide). Compare with our FD rates tracker to see the current spread.

One number worth keeping in mind: if inflation runs at 3% and your EPF earns 6.15% (the 2025 rate), your real return is approximately 3.15%. Our inflation calculator can help you model this over time.

How to Access Your Money#

Account 3 Withdrawals (Akaun Fleksibel)#

The simplest. Log in to myEPF, select Akaun Fleksibel (Account 3) withdrawal, enter the amount, confirm your bank account, and the funds typically arrive within three working days. No reason required.

Minimum withdrawal: RM50. You can withdraw the full Akaun Fleksibel balance if you want.

Account 2 Withdrawals (Akaun Sejahtera)#

Each purpose has its own process:

• Housing — apply online or at an EPF branch. For loan repayments, EPF can pay the bank directly each month.
• Education — apply via myEPF with offer letter or enrolment proof from an approved institution.
• Health — specific illnesses listed by EPF. Requires medical documentation.
• Hajj — coordinate through Lembaga Tabung Haji.

Approval timelines vary by category. Housing and education withdrawals are the most common and tend to be processed within a few weeks.

Retirement Withdrawal at Age 55 (Akaun Persaraan, formerly Account 1)#

At 55, you have full flexibility over Akaun Persaraan (Account 1):

• Withdraw everything at once (lump sum)
• Set up monthly payouts — useful if you want a structured income stream
• Leave it invested and let EPF continue managing it — your balance keeps earning the annual dividend

A partial withdrawal at age 50 is available for certain qualifying conditions, though Akaun Persaraan remains largely locked until 55.

i-Invest — Putting Your EPF to Work#

i-Invest is EPF's members investment scheme that lets you channel a portion of your Akaun Persaraan (Account 1) savings into approved unit trust funds. Instead of EPF managing that slice, you choose from a list of approved fund managers and funds.

Who Qualifies#

You must have:

• Savings in Akaun Persaraan above your Basic Savings for your age band, AND
• A minimum investment of RM1,000 per transaction

You can transfer up to 30% of the amount in your Akaun Persaraan that sits above your Basic Savings — not a flat threshold. Basic Savings is an age-banded figure set so that a member reaches roughly RM390,000 by age 60, and EPF applies a revised Basic Savings table from 1 January 2026. Worked the way KWSP works it: a member with RM24,000 in Akaun Persaraan and a Basic Savings of RM11,000 can invest (RM24,000 − RM11,000) × 30% = RM3,900. There is also a minimum investment of RM1,000 per transaction. Because Basic Savings rises with age, a younger member with a modest balance is often below it and can invest nothing at all — check your own figure in i-Akaun rather than assuming.

How to Apply#

Through the myEPF portal under the i-Invest section. You select the fund manager and fund, confirm the amount, and EPF transfers the funds to the fund manager.

Risk Considerations#

i-Invest exposes that portion of your retirement savings to market risk. Unlike EPF's own dividend (which has never been negative), unit trust returns can be negative in a bad year. The EPF dividend for a conventional member over the past decade has averaged around 5–6% annually — many unit trust funds do not consistently beat that after fees.

i-Invest suits members who:

• Have a longer investment horizon (10+ years to retirement)
• Understand the funds they're selecting
• Want exposure to specific asset classes or sectors not covered by EPF's portfolio

It is not suitable for members close to retirement age or those uncomfortable with capital fluctuation.

How to Check Your EPF Balance#

Two main ways:

1. myEPF app (recommended) Download from the App Store or Google Play. Log in with your i-Akaun credentials. You can see your Akaun Persaraan (formerly Account 1), Akaun Sejahtera (formerly Account 2) and Akaun Fleksibel (Account 3) balances, contribution history, and withdrawal status — all in one place.

2. epf.gov.my The desktop portal. Same features as the app. Requires i-Akaun registration (one-time setup using your MyKad number and a registered mobile number).

If you haven't registered for i-Akaun yet, walk into any EPF branch with your MyKad and they'll set it up on the spot. It takes about 15 minutes.

KWSP may offer other ways to check contributions, such as by SMS; we could not confirm the number or the format (an earlier version gave a short code), so ask KWSP (HELD).

3 Things to Do This Week#

1. Check Akaun Fleksibel (Account 3) balance Log in to myEPF and see what's sitting in Akaun Fleksibel. If you have an urgent financial need, this is the most accessible pool. If you don't, leave it — it's still earning EPF dividend.

2. Verify your employer's contributions Your contribution history in myEPF shows every monthly contribution. Cross-check against your pay slips. Employers must pay within the period the Minister prescribes (EPF Act 1991 s.43(2), s.45(3)); we could not confirm the date (an earlier version said the 15th of the following month; HELD). Gaps or shortfalls are worth flagging to your HR department, and to KWSP if unresolved.

3. Register for i-Akaun if you haven't If you've never logged in to your EPF account, start there. You cannot make any online withdrawals, track contributions, or access i-Invest without i-Akaun. Fifteen minutes at a branch gets it done.

Related Guides#

• PRS Malaysia — Complete Guide to Private Retirement Scheme 2026 — the voluntary retirement scheme that stacks a RM3,000 tax relief on top of EPF
• EPF Housing Withdrawal (Akaun Sejahtera, formerly Account 2) Malaysia — how to use your EPF savings to buy, build, or pay off your home loan
• Wills and Estate Planning in Malaysia — Complete Guide 2026 — what happens to your EPF savings when you die, and why nominations matter

Amendment, 6 August 2026. The i-Invest eligibility rule stated here — “25% of whatever you have above RM1,000 in Account 1”, with a worked example giving RM4,750 on a RM20,000 balance — was wrong, including in the FAQ that feeds this page’s structured data. Per KWSP it is 30% of the amount in Akaun Persaraan above your age-banded Basic Savings, minimum investment RM1,000. A member with RM20,000 is below Basic Savings at most adult ages and can invest nothing at all.

Amendment, 4 October 2026. The section on foreign workers said employees pay 5% of wages and employers a flat RM5 a month, effective from January 2018. That is out of date: since October 2025 wages, EPF is compulsory for non-citizen employees at 2% from the employee and 2% from the employer, with domestic servants exempt, per KWSP.

Amendment, 11 October 2026. In the section comparing EPF dividends with fixed deposits, the guide said "Malaysia's 12-month fixed deposit rates from major banks have generally ranged between 3.0% and 3.85% in recent years". That was wrong. Bank Negara Malaysia's monthly series of the average 12-month fixed deposit rate at commercial banks (published on data.gov.my) was 2.22% p.a. in June 2026; it has not been at or above 3.0% in any month since 2019 (3.09–3.33% that year), and its highest point since then was 2.90%, in 2023. The section now gives that average, plus the 12-month board rates of 1.80–1.90% p.a. at CIMB, Hong Leong, AmBank, Public Bank and RHB and campaign rates up to 3.90% p.a. that we read from the banks' own pages on 11 October 2026 for our fixed deposit guide. Source: data.gov.my interest rates dataset (source: BNM), series fdr_12mo, commercial banks.

Amendment, 11 October 2026 (wording). In the amendment note above, the sentence that introduced a superseded figure now names the guide as the subject ("the guide said" or "the guide's … said"), so it reads plainly as the old text rather than a bank's own page. No figure in this guide changed.

Amendment, 11 October 2026 (fixed deposit comparison, second check). The "EPF versus fixed deposits" section said the average 12-month rate "has not been at or above 3.0% since 2019" and gave 12-month board rates of "1.80–1.90% p.a. at CIMB, Hong Leong, AmBank, Public Bank and RHB". A second check from Bank Negara Malaysia's series (data.gov.my, fdr_12mo, commercial banks) shows the last month at or above 3.0% was December 2019 (2019 ran 3.09–3.33%), and that from January 2023 to June 2026 the average ranged from 2.22% (June 2026) to 2.90% (May 2023); the section now says so. The board rates now name only the banks whose own pages we read in this second check: 1.80% at Hong Leong, AmBank and RHB and 2.15% at BSN (their own pages, effective 1 August, 25 August, 3 September and 7 October 2026). CIMB's and Public Bank's pages could not be read in the second check, so their figures are no longer repeated here. The latest month in Bank Negara Malaysia's series is June 2026, so it describes the position four months earlier than the board rates. Sources: data.gov.my interest rates dataset (source: BNM), and the banks' rate pages, read 11 October 2026.

Amendment, 17 October 2026 (dividend FAQ). The dividend FAQ stated the 2025 declared rates (6.15% conventional and Shariah) and a five-year range of 5.35% to 6.30%. We could not confirm these from KWSP: kwsp.gov.my returned a Cloudflare block (HTTP 403) on 17 October 2026, which we did not bypass. The figures are removed from the FAQ, which now points to KWSP's site. The body of this guide still quotes the 2025 rate and an earlier "verify current rate" marker, and is on the audit list for the same check.

Amendment, 17 October 2026 (EPF account names). This guide called EPF's second account only "Account 2". Since the 11 May 2024 restructuring that account is Akaun Sejahtera, so the guide now says "Akaun Sejahtera (formerly Account 2)" and, where they appear beside it, Akaun Persaraan (Account 1) and Akaun Fleksibel (Account 3). Old names stay only where they describe the past (the pre-May 2024 70/30 split, the i-Lestari scheme). No rate, limit or eligibility rule was changed. The names and the 75% / 15% / 10% split are from the Deputy Finance Minister's reply in the Dewan Rakyat as reported by RTM on 6 July 2026, and from the government portal malaysia.gov.my ("Jenis Akaun Simpanan KWSP"), both checked on 17 October 2026. Neither page uses the words "Account 2": the match of Akaun Sejahtera to the old Account 2 rests on its purposes (housing, education, health) and on RTM's report that the Akaun Persaraan share rose from 70 to 75 per cent. kwsp.gov.my returned 403 to our checks, and the EPF Act 1991 text on the AGC site (online 2022 version) predates the restructuring, so the names are not confirmed from a gazetted amendment.

Amendment, 17 October 2026 (EPF account names, follow-up). A further sweep of the EPF account names. Where this page still used the pre-May 2024 labels for current accounts, it now says Account 1 as Akaun Persaraan, Account 2 as Akaun Sejahtera and Account 3 as Akaun Fleksibel on first use in a section and the plain new name afterwards. The old names stay only where they describe the past (the 70/30 split before 11 May 2024, balances held before the restructuring, COVID-era schemes), in earlier amendment notes, and in the titles of linked guides. The links between the new names and the old account numbers are our reading, not KWSP's wording: the RTM report of 6 July 2026 and the malaysia.gov.my page "Jenis Akaun Simpanan KWSP" name the three accounts and the 75% / 15% / 10% split but do not use the words "Account 1", "Account 2" or "Account 3" (evidence in docs/verification-log/followups-g5-oct17/). Only labels changed; no figure, rate or withdrawal rule was changed.

Follow-up amendment, 17 October 2026 (guide title and link labels). The title of this guide changed from "EPF Complete Guide 2026: Account 1, 2 & 3 Explained" to "EPF Guide 2026: Persaraan, Sejahtera & Fleksibel", so that it uses the current account names. The order follows the 75% / 15% / 10% split, and the match of each name to the old account number remains our reading, not KWSP's wording (RTM, 6 July 2026; malaysia.gov.my "Jenis Akaun Simpanan KWSP"). The slug is unchanged. Link labels elsewhere on the site that quoted the old title were updated. Also reworded (held): the SMS check 'send KWSP [IC number] to 15888' is removed, because no source we could read gives the number or format; 'Employers are legally required to remit contributions by the 15th of the following month' now says the Act leaves the period to the Minister (EPF Act 1991 s.43(2), s.45(3)), and the date is HELD. A 'Last updated' line was added. No other figure, rate or rule was changed. Evidence: docs/verification-log/evidence-batch-j-oct17/.