i-Topup KWSP: Contribution Rules & Guide for Employers in Malaysia

Managing EPF contributions is a core responsibility for HR and payroll teams in Malaysia. From time to time, employees may request to contribute more than the standard EPF rate, or employers may want to offer higher EPF contributions as part of their employee benefits package. This is where i-Topup KWSP becomes relevant.

This article explains i-Topup KWSP for HR teams and employers in Malaysia, covering what it is, how it works, contribution calculations, HR processes, and compliance considerations.

What is i-Topup KWSP?

i-Topup KWSP (previously known as Voluntary Excess / VE) is a voluntary EPF contribution option under Kumpulan Wang Simpanan Pekerja (KWSP).

It allows:

Employees to contribute more than the statutory employee EPF rate through salary deduction, and/or
Employers to contribute more than the statutory employer rate as an additional employee benefit

In simple terms, i-Topup allows EPF contributions to go above the standard rates set by law.

Official reference: www.kwsp.gov.my

Simple Explanation for HR & Employers

Under normal rules, an employee below 60 years old contributes 11% of their monthly salary to EPF.

With i-Topup, either:

The employee chooses to increase their own contribution (for example, from 11% to 16%), or
The employer chooses to add extra EPF on top of the normal employer share

All additional contributions are processed through monthly payroll, not manual or ad-hoc payments.

Why i-Topup Matters for Employers

From an employer and HR perspective, i-Topup:

Supports long-term employee financial wellbeing
Acts as a meaningful, non-cash employee benefit
Helps with employee retention and employer branding
Uses existing payroll and EPF systems
Requires minimal administrative changes

Key Benefits of i-Topup

Benefits for Employees

Automatic EPF savings through salary deduction
Same EPF dividend rate for additional contributions
Long-term growth through compounding
Eligible for income tax relief, subject to EPF limits
Flexible contribution rate that can be changed or cancelled

Benefits for Employers

Can be offered as an additional employee benefit
No special employer registration required
Managed through i-Akaun (Majikan)

Who Can Use i-Topup?

Employees

Any employee with an employer may request to increase their EPF contribution rate.

HR requirement:

Employee completes KWSP Form 17A/18A
Form is submitted to HR or Payroll for processing

Employers

Employers may choose to:

Pay EPF contributions above the statutory employer rate
Use higher EPF contributions as an incentive or retention tool

HR note:

No submission at the KWSP counter is required
HR must update payroll and i-Akaun (Majikan) records

i-Topup Contribution Calculation (HR & Payroll Reference)

The tables below show illustrative calculations based on Jadual Ketiga, EPF Act 1991.

Actual contribution amounts may vary depending on employee age, salary, and selected contribution rates.

Employer Adds 5% i-Topup (Employer Share)

Employee Category	Salary	Employee Statutory Rate	Employer Statutory Rate	i-Topup Employer	Total Employer Contribution	Total EPF Contribution
Below 60, salary below RM5,000	RM1,000	11% = RM110	13%	5%	18% = RM180	RM290
Below 60, salary above RM5,000	RM6,250	11% = RM693	12%	5%	RM1,062.50	RM1,756*
60 & above, salary below RM5,000	RM1,000	0%	4%	5%	RM90	RM90
60 & above, salary above RM5,000	RM6,250	0%	4%	5%	RM562.50	RM563*

* Rounded to the nearest ringgit.

Employee Adds 5% i-Topup (Employee Share)

Employee Category	Salary	Employee Statutory Rate	i-Topup Employee	Total Employee Contribution	Employer Contribution	Total EPF Contribution
Below 60, salary below RM5,000	RM1,000	11%	5%	RM160	RM130	RM290
Below 60, salary above RM5,000	RM6,250	11%	5%	RM1,000	RM750	RM1,750
60 & above, salary below RM5,000	RM1,000	0%	5%	RM50	RM40	RM90
60 & above, salary above RM5,000	RM6,250	0%	5%	RM312.50	RM252	RM563*

* Rounded to the nearest ringgit.

How i-Topup Works (HR Process)

When an Employee Requests i-Topup

Employee completes KWSP Form 17A/18A
Employee submits the form to HR or Payroll
HR updates the payroll system
New deduction starts from the next salary cycle
Employer submits EPF contributions as usual

When Employer Increases Employer Contribution

HR decides the new employer contribution rate
Update payroll settings
Submit contributions through i-Akaun (Majikan)
Keep records for audit and compliance

i-Topup vs i-Simpan (Quick Comparison)

Item	i-Topup	i-Simpan
Payment method	Salary deduction	Self-payment (online)
Who contributes	Employee, employer, or both	Individual only
Contribution style	Fixed monthly percentage	Flexible, anytime
HR involvement	Required	Not required
Form needed	KWSP Form 17A/18A	None

Cancelling or Changing i-Topup

Employees may:

Reduce the additional contribution percentage, or
Return to the original statutory contribution rate

Process:

Complete KWSP Form 17A/18A again
Submit to HR
HR updates payroll and i-Akaun (Majikan)

Tax Relief and Contribution Limits

Employees are eligible for EPF income tax relief, subject to current limits
Total voluntary EPF contributions (including i-Saraan and i-Sayang) are capped at RM100,000 per year
i-Topup contribution amount depends on monthly salary

Where to Get Official Information

For official forms, updates, and guidelines:

www.kwsp.gov.my
KWSP Contact Centre or nearest KWSP office

Compliance Disclaimer

EPF contribution rules and rates may change from time to time. Employers should always refer to the latest guidelines issued by Kumpulan Wang Simpanan Pekerja (KWSP) and ensure payroll settings are updated accordingly.

Frequently Asked Questions (FAQ)

What is i-Topup KWSP?

A voluntary option to increase EPF contributions through salary deduction.

Who can contribute using i-Topup?

Employees, employers, or both.

Is tax relief available?

Yes, subject to EPF tax relief limits.

Does HR approval matter?

Yes, because payroll and system updates are required.

Can employees change or cancel i-Topup later?

Yes. Employees can submit the same form again to update or cancel the contribution.

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