# EPF

> The Employees Provident Fund — Malaysia's mandatory retirement savings scheme, funded by employer and employee contributions.

- Category: glossary
- Language: en
- Status: published
- Updated: 2026-07-10
- Canonical: https://negaraku.md/en/glossary/epf

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**Bahasa Malaysia:** Kumpulan Wang Simpanan Pekerja (KWSP) · **English:** Employees Provident Fund (EPF) · **中文:** 雇员公积金

EPF, known locally as KWSP, is Malaysia's national retirement savings scheme.
Employers are required to deduct and contribute a percentage of an eligible
employee's monthly wages into that employee's individual EPF account, on top
of the employer's own contribution — meaning the balance grows from both
sides of the employment relationship, plus annual dividends declared by EPF
on the accumulated savings.

## In practice

Contribution rates differ by employee category (for example, age band and
citizenship status) and are set out in EPF's contribution schedules, which
are updated from time to time. Savings are held in separate accounts within
a member's EPF account, generally intended for retirement, housing and
healthcare needs. Full withdrawal is normally available from age 55, while
conditional partial withdrawals — for purposes such as buying a home,
medical treatment, or education — are permitted earlier under specific
schemes. Employers who fail to remit EPF contributions on time are subject
to penalties and enforcement action.

## Related terms

- [Employment Act 1955](/en/law/employment-act-1955)

## Sources

- Employees Provident Fund (KWSP) — https://www.kwsp.gov.my/ (EPF/KWSP)

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