Muhammad Adam bin Ali
Every month part of your salary goes into EPF (KWSP). But do you know where it goes and when you can use it?
How much is contributed?
For Malaysian employees under 60, you contribute 11% of wages. Your employer contributes 13% if wages are RM5,000 or below, or 12% above RM5,000.
Three accounts (members under 55) — contributions received from 11 May 2024 are split:
| Account | Contribution section | Usage |
|---|---|---|
| Retirement Account | 75% | Retirement savings can generally be withdrawn at age 55 |
| Sejahtera Account | 15% | Approved expenditures, such as housing, education, and health |
| Flexible Account | 10% | Short-term needs, can be withdrawn at any time (minimum RM50) |
Balances from before 11 May 2024 were not re-split.
Use Akaun Fleksibel wisely.
It’s convenient, but every ringgit withdrawn today loses years of dividends and growth. Treat it as a last layer, not a substitute for your own emergency fund.
Tips
- check statements in the official KWSP app or website.
- Make sure your employer contributes every month and report it to EPF if not.
- Self-employed and gig workers can contribute voluntarily.
Key takeaways
- 75% retirement, 15% big needs, 10% flexible; don’t drain Akaun Fleksibel without a strong reason.
This article is for general education and is not financial advice.
