Penamaan KWSP in Malaysia: Legal Implications, Process, and HR’s Role

Employee benefits are more than monthly contributions and statutory compliance. One important but often overlooked area is Penamaan KWSP.

When employees do not make a nomination, their families may face longer withdrawal processes, extra documents, and unnecessary stress during difficult times. This can delay access to EPF savings, which are intended to provide immediate financial support.

Penamaan KWSP presents an opportunity to play a supportive role in HR. By educating, reminding, and guiding employees, HR helps prevent future complications while showing genuine care for employee well-being beyond the workplace.

What is Penamaan KWSP?

Penamaan KWSP is the process where an EPF member names an individual or an institution to receive or manage their EPF savings if the member passes away.

The main purpose of Penamaan KWSP is to allow KWSP to release the savings more quickly, without requiring the family to go through complex legal processes.

It is important to understand that naming a nominee does not always mean giving ownership of the money. In many cases, the nominee’s role is to manage and distribute the savings according to legal or religious rules.

Why Penamaan KWSP Matters to Employers & HR

Although Penamaan KWSP is a personal decision, it has clear implications in the workplace.

First, it protects employees’ families financially. When savings can be accessed faster, families are better supported during emergencies.

Second, it reduces post-employment administrative complications. HR teams often get questions from former employees’ families. Having proper nomination in place helps avoid confusion and delays.

Finally, encouraging Penamaan KWSP shows that the employer cares beyond statutory requirements. It sends a message that the company values long-term employee wellbeing, not just monthly compliance.

What Happens If There Is No Penamaan KWSP?

If an employee passes away without a nomination, the withdrawal process becomes more complex.

Dependants may need to apply under the death withdrawal without nomination process, which usually takes longer and requires more documents. In some cases, families may need legal letters or court documents before KWSP can release the savings.

This can also increase the risk of family disputes, especially when there is no clear agreement on who should manage or receive the funds.

Types of Penamaan KWSP

For Muslim Employees

For Muslim EPF members, the nominee acts as a wasi or administrator. The nominee does not automatically own the EPF savings.

Their responsibility is to manage the withdrawal and distribute the savings according to Islamic inheritance law (faraid). This distinction is important and often misunderstood.

For Non-Muslim Employees

For non-Muslim EPF members, the nominee is usually the beneficiary. This means the nominee receives the EPF savings based on the percentage specified by the member.

The distribution follows civil law and the instructions provided in the nomination.

Who Can Make a Penamaan KWSP?

Not every EPF member can make a nomination immediately. The general requirements are:

18 years old or above
A Malaysian citizen or permanent resident (with limited exceptions)
The nomination must be made personally by the member

Nominations cannot be submitted by employers or representatives on behalf of employees.

Who Can Be Named as a Nominee?

Employees have flexibility when choosing a nominee. They may name:

Family members such as spouse, children, or parents
Trusted individuals
Trust institutions

From an HR perspective, it is helpful to remind employees to choose nominees who are reliable and capable of handling administrative matters, especially for complex family situations.

How to Register or Update Penamaan KWSP

Online Method

Employees can register or update their nomination through the i-Akaun app or web portal. The usual steps are:

Log in to i-Akaun app or web portal.
Go to “Profil”
Select “Penamaan” then “Daftar untuk penamaan”
Complete the process and verify the fingerprint at a KWSP office or self-service terminal

Manual Method

Employees may also register or update their nomination using Form KWSP 4. As an alternative to the online method, the completed form must be submitted in person at any KWSP office for verification using fingerprint authentication (CIJ).

Employees can obtain Form KWSP 4 by downloading and printing it from the official KWSP website or by collecting a physical copy directly from a KWSP office.

The form must be completed fully and accurately. This includes the member’s details, the list of nominees, each nominee’s identification number, relationship, and the distribution percentage, which must total 100%. Any missing information or errors may cause the application to be rejected.

Once completed, the employee must visit a KWSP office or counter personally with their original identification document (such as MyKad). A KWSP officer will verify the identity, review the form, and record the nomination in the system.

After the nomination is confirmed, the new nomination will automatically replace any previous records. Employees are advised to keep a copy of the submitted form or note the update date for future reference.

Documents Required

The common documents include:

Form KWSP 4
Identification documents such as MyKad or passport (where applicable)
Supporting documents, if required by KWSP

HR teams can help by pointing employees to official KWSP resources and checklists.

Common Misunderstandings About Penamaan KWSP

Many employees delay nomination due to misunderstandings. Some common myths include thinking that the nominee always owns the money or that EPF savings disappear if unclaimed.

In reality, nominations can be updated at any time, EPF savings remain protected, and partial nominations remain valid even if one nominee passes away.

Clearing up these misunderstandings helps employees act with confidence.

HR’s Role in Supporting Penamaan KWSP

HR does not need to give legal advice to be helpful. HR teams can:

Introduce Penamaan KWSP during onboarding
Remind employees during major life events such as marriage or childbirth
Share official KWSP guidance and links
Encourage regular updates to personal records

Frequently Asked Questions (FAQ)

Is Penamaan KWSP mandatory for employees?

No, but it is strongly encouraged to avoid future complications.

Can HR submit nominations on behalf of employees?

No. The nomination must be made personally by the EPF member.

How often should nominations be updated?

Employees should review nominations after major life changes.

What happens if a nominee is under 18?

KWSP will manage the savings according to its procedures until the nominee reaches the required age.

Can employees name more than one nominee?

Yes, and they can specify the percentage for each nominee.

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