KUALA LUMPUR (Oct 9): All Malaysians will be automatically registered as Employees Provident Fund members upon turning 18 in a push for earlier retirement savings.
Automatic registration “expands access to retirement savings”, the EPF said in a statement on Friday following the announcement by Prime Minister Datuk Seri Anwar Ibrahim during the Budget 2027 presentation.
Under the existing system, registration occurs when the pension fund, also known by EPF and its Malay acronym KWSP, receives an individual’s first contribution from an employer. Employers can also register employees directly or individuals can register themselves.
Latest data from the EPF showed that the retirement fund had 18.5 million members as at end-June with 10.95 million active members — being those who had made at least one contribution the past 12 months.
For employees below 60 years old, the standard statutory contribution rates are 11% from employees and 13% from employers for monthly wages of RM5,000 or less. The employer rate is 12% for wages above RM5,000.
Anwar also announced initiatives related to the retirement funds that cover withdrawals, medical insurance packages, and incentives for e-hailing drivers that mainly transport human passengers and p-hailing workers that transport items like food, groceries, and parcels.
To encourage retirement savings among the drivers and riders, the government will provide a 20% matching incentive, meaning eligible members must contribute RM3,000 annually to receive the maximum RM600 incentive, capped at RM6,000 over a lifetime up to the retirement age.
The i-Saraan Plus programme for e-hailing and p-hailing drivers will also continue, the EPF noted.
Medical coverage and retirement withdrawal
On Friday, Anwar also said that members below 55 will be allowed to use their Akaun Sejahtera savings to pay premiums for MediAsas, the medical insurance and takaful plan scheduled for nationwide rollout in January 2027.
Akaun Sejahtera receives 15% of new contributions for members below 55, alongside allocations of 75% to Akaun Persaraan and 10% to Akaun Fleksibel. Currently, EPF already allows members to purchase approved life and critical illness insurance or takaful through its i-Lindung facility.
Members who opt for Simpanan Shariah would be able to pay zakat directly from their dividends, similar to Permodalan Nasional Bhd and Lembaga Tabung Haji accounts, Anwar said.
He also highlighted EPF's i-Emas, which allows eligible members aged 55 and 60 to receive monthly withdrawals while their remaining savings continue earning dividends. The facility is already available.