1. What EPF is
EPF (Employees Provident Fund, or KWSP in Malay) is Malaysia's mandatory retirement savings scheme under the EPF Act 1991. Every month, you and your employer contribute a share of your wage to your EPF account. Since May 2024, EPF savings are organised into three accounts: Akaun Persaraan (retirement), Akaun Sejahtera (wellbeing) and Akaun Fleksibel (flexible). Your KWSP statement shows your own balances; this guide covers the monthly contribution rates, not withdrawals.
2. Contribution rates for 2026
Malaysian citizens and permanent residents below 60: employees contribute 11% of wages, and employers contribute 13% on wages up to RM5,000 or 12% on wages above RM5,000. Malaysians aged 60 and above: employees contribute 0% and employers contribute 4%. Non-Malaysian employees: employees and employers each contribute 2% on wages from October 2025, excluding domestic workers, up to age 75. The 60-and-above and foreign-worker figures are percentage estimates in the calculator, not band amounts.
3. How the bands work
For wages up to RM20,000, the exact EPF amount comes from the fixed bands in the Third Schedule of the EPF Act 1991, rounded up to the next ringgit. Only wages above RM20,000 use a straight percentage. At salaries that are exact multiples of RM100 the band figure equals the percentage, so the examples below look like simple percentages but match the schedule exactly at these salaries.
4. Worked examples
Monthly contributions (employee / employer): RM2,000 → RM220 / RM260; RM3,000 → RM330 / RM390; RM5,000 → RM550 / RM650; RM7,000 → RM770 / RM840. Note the employer rate drop at RM7,000: above RM5,000 the employer share is 12%, not 13%. Try your own wage in the EPF calculator.
5. EPF vs PCB, SOCSO and EIS
EPF is savings, not tax. PCB is the monthly income-tax deduction, SOCSO (PERKESO) is social security protection, and EIS (SIP) is employment insurance. They are calculated separately and deducted separately on your payslip. The PCB vs contributions guide explains each deduction side by side; this guide does not repeat it.
6. How EPF affects take-home pay
Your take-home pay is your wage minus employee EPF, SOCSO, EIS and PCB. Employee EPF is usually the largest deduction after PCB: at RM5,000, employee EPF is RM550 of the RM584.65 total statutory deductions before PCB. EPF contributions also earn tax relief, capped at RM4,000 a year by law, which is why the relief never covers the full annual contribution. The net-salary calculator shows the full breakdown for any wage.
7. Common questions
Does my employer have to contribute? Yes, employer EPF is mandatory for covered employees; if your payslip shows a lower amount than the rates above, check the wage figure your employer used and raise it with payroll, then KWSP if needed. Does EPF stop at 60? No: employees 60 and above contribute 0%, but employers still contribute 4%. Is the calculator exact? At round salaries the figures match the Third Schedule bands; at other salaries the tool applies the schedule bands up to RM20,000 and a straight percentage above it. Full detail is on the methodology page.