EPF (Employees Provident Fund, KWSP) is Malaysia's mandatory retirement savings scheme. Employers and employees both contribute a percentage of monthly wages into the employee's EPF account, which accrues annual dividends and can generally be withdrawn from age 55, with earlier partial withdrawals permitted for specific purposes such as housing or medical needs.
- Mandatory for most private-sector employees and their employers
- Both employer and employee contribute a percentage of monthly wages
- Funds earn an annual dividend declared by EPF
- Full withdrawal is generally permitted from age 55, with conditional partial withdrawals earlier
Who this applies to: Employers, HR teams and employees seeking to understand Malaysia's retirement savings framework.
On this page
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
Sources
- Employees Provident Fund (KWSP) — EPF/KWSP