EPF (KWSP) Contribution Rates 2026: How Much Do Employees and Employers Contribute?

EPF (KWSP) contributions are mandatory monthly contributions made by both employers and employees in Malaysia.

The contribution consists of the employer's share and the employee's share and helps employees build retirement savings throughout their working years.

This requirement is stated under Section 43(1) of the EPF Act 1991, where both employers and employees are responsible for making monthly contributions based on the rates set out in the Third Schedule of the Act.

Since 1 October 2025, EPF contributions have also become mandatory for foreign workers in Malaysia.

In this guide, we'll explain who needs to contribute, the latest EPF contribution rates, how contributions are allocated, and what employees can do if their employer fails to contribute.

What Is an EPF (KWSP) Contribution?

An EPF contribution is a mandatory deduction that includes:

Employee contribution
Employer contribution

Employers must calculate and submit contributions according to the contribution rates stated under the EPF Act 1991.

Monthly contributions must be paid on or before the 15th of the following month.

For example, EPF contributions for May salaries must be paid by 15 June.

Who Must Contribute to EPF?

EPF contributions are compulsory for individuals employed under a Contract of Service or Apprenticeship.

This includes:

Permanent employees
Contract employees
Part-time employees
Temporary employees
Employees on probation
Company directors who receive wages or remuneration
Employees who returned to work after recovering from disability
Employees who continue working after making Age Withdrawal
Pensioners who work for private sector employers
Employees who return to work after retirement
Foreign workers holding valid immigration passes and employed legally in Malaysia

EPF contributions must be made regardless of whether wages are paid monthly, weekly, or daily.

Who Is Considered an Employer?

An employer refers to any individual or entity that has a contract of service or apprenticeship with an employee.

This includes:

Business owners
Companies
Government agencies
Statutory bodies
Local authorities
Any person responsible for paying wages

Who Is Considered an Employee?

An employee is a person employed under a Contract of Service or Apprenticeship as defined under the EPF Act 1991.

A contract may be:

Written or verbal
Express or implied

The minimum working age is subject to the Children and Young Persons (Employment) Act 1966.

The maximum age for mandatory EPF contributions is 75 years old.

How Are EPF Contributions Allocated?

EPF contributions are credited into three accounts:

Account	Allocation
Akaun Persaraan	75%
Akaun Sejahtera	15%
Akaun Fleksibel	10%

EPF Accounts After Age 55

Once a member reaches age 55, two accounts will exist:

Akaun 55

Combines Akaun Persaraan, Akaun Sejahtera, and Akaun Fleksibel.
Funds can be withdrawn at any time after age 55.

Akaun Emas

Created when a member reaches age 55.
Any contributions received after age 55 will be credited here.
Funds can only be withdrawn after age 60.

EPF Contribution Rates 2026

Category 1: Malaysian Citizens (Senior Citizens)

For Malaysian employees aged 60 and above:

Contributor	Rate
Employee	0%
Employer	4%

The employee's salary is not deducted. Only the employer contributes.

Category 2: Malaysian Citizens, Permanent Residents, and Foreign Workers Registered Before 1 August 1998

Monthly Salary RM5,000 and Below

Age	Employee	Employer
Below 60	11%	13%
60 and Above	5.5%	6.5%

Monthly Salary Above RM5,000

Age	Employee	Employer
Below 60	11%	12%
60 and Above	5.5%	6%

Category 3: Foreign Workers Registered From 1 August 1998

For all foreign employees regardless of salary or age:

Contributor	Rate
Employee	2%
Employer	2%

Image source: KWSP

Need to Calculate EPF Contributions?

Use EPF Calculator to quickly calculate employee and employer EPF contributions based on salary.

Is EPF Calculated Based on Basic Salary Only?

No.

EPF contributions are calculated based on "wages", which include most cash payments made to employees.

Payments Subject to EPF Contributions

Salary
Bonus
Allowances
Commission
Incentives
Salary arrears
Maternity leave wages
Study leave wages
Unused annual leave and sick leave payments
Half-pay leave wages
Other payments under a contract of service

Image source: KWSP

Payments Not Subject to EPF Contributions

Service charges
Overtime payments
Gratuity
Retirement benefits
Retrenchment benefits
Temporary layoff benefits
Travel allowances
Travel concessions

Image source: KWSP

Can an Employer Refuse to Contribute EPF?

No.

Employers are legally required to make EPF contributions for eligible employees.

Failure to do so is a criminal offence under the EPF Act 1991.

Some offences and penalties include:

Offence	Penalty
Failure to register as an employer	Up to 3 years imprisonment or RM10,000 fine or both
Failure to pay EPF contributions on time	Up to 3 years imprisonment or RM10,000 fine or both
Providing false information	Up to 3 years imprisonment or RM10,000 fine or both
Deducting employee contributions but failing to pay EPF	Up to 6 years imprisonment or RM20,000 fine or both
Deducting employer contribution from employee wages	Up to 6 years imprisonment or RM20,000 fine or both

EPF may also take enforcement actions such as:

Bankruptcy proceedings
Asset seizure and sale
Travel restrictions
Court action

How to Check Whether Your Employer Has Paid EPF

You can verify your EPF contributions through:

EPF i-Akaun

My Statement

Download your EPF statement through the i-Akaun portal to view monthly contribution transactions.

EPF Branches and Kiosks

You can also visit an EPF branch or selected kiosks to print your contribution statement.

Always compare the employee contribution amount shown on your payslip with the amount credited into your EPF account.

What Should You Do If Your Employer Does Not Contribute EPF?

If your employer deducts EPF from your salary but does not pay it to EPF, you should file a complaint immediately.

You may submit a report to any EPF office together with supporting documents such as:

Personal details
EPF member number
Employer details
Employment contract (if available)
Employment period
Salary records
Payslips showing EPF deductions
EPF Form 1879 (Employer Non-Contribution Complaint Form)
Other supporting documents

You should make a complaint if:

EPF deductions were not made
Employer contributions were not paid
Employee contributions were deducted but not submitted
Incorrect contribution amounts were paid
Wrong contribution rates were used
Contributions were paid late

More Information

For the latest information and updates on EPF (KWSP) contributions, please refer to:

Official EPF (KWSP) Website
EPF (KWSP) Facebook Page
EPF Contact Centre: 03-8922 6000

FAQs

Are probation employees entitled to EPF contributions?

Yes. Employees on probation are still entitled to EPF contributions under the EPF Act 1991.

Can employees contribute more than the standard 11%?

Yes. Employees may choose to contribute more than the statutory rate by submitting Form KWSP 17A (Special).

What is the maximum age for mandatory EPF contributions?

75 years old.

Can freelancers contribute to EPF?

Yes. Freelancers can contribute voluntarily through the i-Saraan programme.

How can I check my EPF contributions?

You can check your contributions through:

EPF i-Akaun
EPF statements
The EPF member portal

When is the deadline for employers to pay EPF contributions?

Employers must pay contributions by the 15th of the following month.

Are foreign workers required to contribute to EPF?

Yes. Foreign workers who are legally employed in Malaysia are required to contribute at the prescribed rates.

Ready to Hire?

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