Budget 2027: EPF Supports RM2,000 Minimum Wage and Automatic Membership at 18

The Employees Provident Fund (EPF) has welcomed several measures announced under Budget 2027, including Malaysia's planned RM2,000 minimum wage and automatic EPF membership registration for Malaysian citizens when they turn 18 years old.

EPF Chief Executive Officer Ahmad Zulqarnain Onn said the minimum wage increase could help improve workers' livelihoods and strengthen their retirement savings.

In a statement on October 10, 2026, EPF also supported raising the living-wage benchmark for government-linked investment companies (GLICs) and highlighted programmes designed to help gig workers and retirees manage their savings.

RM2,000 Minimum Wage to Take Effect in June 2027

Malaysia's national minimum wage is set to increase from RM1,700 to RM2,000 per month starting in June 2027. The change is expected to benefit more than four million workers.

According to Ahmad Zulqarnain Onn, the increase is an important step towards improving workers' incomes and helping them prepare for retirement.

EPF also said better wages could help ensure that more of the benefits from economic growth reach workers.

Under Budget 2027, eligible micro, small and medium enterprises (MSMEs) with annual sales below RM50 million will be exempted from the new minimum wage rate to give them more time to adjust their business models.

The government has also welcomed commitments by GLICs and government-linked companies (GLCs) to raise their living-wage benchmark from RM3,100 to RM3,400 per month. This initiative is expected to benefit approximately 230,000 workers.

EPF Membership to Be Automatic at Age 18

Budget 2027 also introduces a measure to expand access to retirement savings by automatically registering Malaysian citizens as EPF members when they turn 18.

The initiative aims to help young Malaysians begin building their retirement savings earlier.

Starting to save at a younger age can give contributions more time to accumulate and earn dividends before retirement.

i-Saraan Plus to Continue for Gig Workers

EPF also confirmed the continuation of i-Saraan Plus, a voluntary retirement savings programme for eligible e-hailing and p-hailing drivers.

Under the programme, eligible drivers can receive a 20% government matching incentive, subject to a maximum of:

RM600 per year
RM6,000 over a lifetime, subject to the applicable eligibility conditions and age limit

The programme is designed to help gig workers build retirement savings despite not having the same mandatory employer contribution arrangements as many salaried employees.

Eligible participants must meet EPF's requirements, including the relevant registration and contribution conditions. More details are available on the official i-Saraan Plus page.

i-Emas Offers Monthly Retirement Payments

EPF is also encouraging members to plan how they use their savings after retirement through i-Emas.

The programme allows eligible members to choose monthly payments from their Age 55 or Age 60 Withdrawals instead of withdrawing the full amount at once.

Savings that remain in EPF will continue to earn annual dividends, subject to the applicable terms and conditions. This can help members spread their retirement savings over a longer period rather than relying on a single withdrawal.

EPF encourages members to consider their financial needs and retirement plans when deciding how to withdraw their savings.

FAQs

When will Malaysia's minimum wage increase to RM2,000?

The national minimum wage is scheduled to increase from RM1,700 to RM2,000 per month in June 2027.

Who will be automatically registered with EPF at age 18?

Under Budget 2027, Malaysian citizens will be automatically registered as EPF members when they turn 18.

What is i-Saraan Plus?

i-Saraan Plus is a voluntary retirement savings programme for eligible e-hailing and p-hailing drivers. It offers a 20% government matching incentive, capped at RM600 annually and RM6,000 over a lifetime, subject to EPF's conditions.

What is i-Emas?

i-Emas allows eligible EPF members to receive monthly payments from their Age 55 or Age 60 Withdrawals instead of making a full withdrawal at once.

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