How EPF (KWSP) Contributions Work: Rates, Accounts & Withdrawals

The statutory contribution rates

Contributions are split between you and your employer. The standard rates for Malaysian citizens below age 60 are:

• Employee: 11% of monthly wages (deducted from your pay).
• Employer: 13% if your monthly wages are RM5,000 or below, and 12% if they are above RM5,000.
• So on a RM4,000 salary the total going in is 24% (11% + 13%); above RM5,000 it is 23% (11% + 12%).

It is a stepped table, not a flat percentage

EPF does not simply multiply your exact wage by the rate. It uses the KWSP Third Schedule, which groups wages into RM20 bands and rounds the contribution up to the nearest ringgit. For most salaries the difference from a straight percentage is only a ringgit or two, so a percentage estimate (like this site's calculator) is close enough for planning — but your payslip figure comes from the official table.

"Wages" for EPF means salary, bonuses, commissions, allowances and paid leave — but not things like travel claims, gratuity or benefits-in-kind.

The three EPF accounts (since 2024)

In May 2024 EPF restructured members' savings from the old Account 1 / Account 2 split into three accounts. Each monthly contribution is divided as follows:

• Akaun Persaraan (Retirement) — 75%. Locked until retirement; this is the core nest egg.
• Akaun Sejahtera (Wellbeing) — 15%. For approved life needs such as housing, healthcare and education.
• Akaun Fleksibel (Flexible) — 10%. Can be withdrawn any time for short-term needs.

Dividends and withdrawal age

EPF declares a dividend each year (a separate Shariah-compliant rate applies to Simpanan Shariah members), credited to your balance so it compounds over your working life. You can make a full withdrawal at age 55, and there are earlier partial withdrawals at 50 and for specific purposes such as buying a first home, education or medical treatment.

You can also top up voluntarily — self-employed and gig workers contribute through i-Saraan, and voluntary self-contributions are allowed up to RM100,000 a year.

The tax angle

Your own EPF contributions qualify for income tax relief, but only up to RM4,000 a year for private-sector (non-pensionable) taxpayers — life insurance and takaful sit in a separate RM3,000 relief. Even if you contributed far more than RM4,000, the deduction is capped. Estimate your monthly contribution with the calculator below, then see how it feeds into your tax with the income tax calculator.

Important caveats

These are the standard rates for citizens under 60; reduced rates apply for members aged 60 and above and different rules apply to non-citizens. Contribution rates and the account structure are set by EPF and can change — always confirm the exact figure on the official KWSP portal (kwsp.gov.my).