Malaysia EPF Contribution Rates Explained
For Malaysian employees below 60, the employee EPF share is 11% of monthly wages. The employer share is 13% for wages of RM5,000 and below and 12% above RM5,000 (KWSP, checked 19 October 2026).
Example: on RM4,000 a month, the employee pays RM440 and the employer RM520, so RM960 goes into EPF and take-home pay falls by RM440 before tax and other deductions.
The Employees Provident Fund (EPF, or KWSP) is Malaysia’s mandatory retirement savings scheme for private-sector employees. Each month, both you and your employer contribute a share of your wages. This guide explains the current rates, how the official Third Schedule rounds them, and how the money is split between your EPF accounts.
Current EPF contribution rates
KWSP lists these rates, effective from the October 2025 salary/wage month (KWSP: contribution rates, checked 19 October 2026):
| Employee | Monthly wages | Employee share | Employer share |
|---|---|---|---|
| Malaysian, below 60 | RM5,000 and below | 11% | 13% |
| Malaysian, below 60 | More than RM5,000 | 11% | 12% |
| Malaysian, 60 and above | Any | 0% | 4% |
| Non-Malaysian registered from 1 August 1998 | Any | 2% | 2% |
Permanent residents and non-Malaysians registered before 1 August 1998 follow the same rates as Malaysians below 60, with separate reduced rates from age 60. Check the KWSP table for your status.
The Third Schedule: why amounts look rounded
Employers do not simply multiply wages by the percentage. They use the Third Schedule of the EPF Act 1991, which sets a fixed contribution for each wage band. KWSP notes that employers may only calculate shares by exact percentage when wages exceed RM20,000; the total including cents is rounded up to the next ringgit (KWSP: Third Schedule, checked 19 October 2026). The bands are RM20 wide up to RM5,000 and RM100 wide above that, and the amounts are based on the top of each band. Your payslip figure can therefore be a little higher than an exact percentage.
Employer share ≈ wages × 13% (RM5,000 and below) or × 12% (above RM5,000)
Confirm the exact figure in the Third Schedule
Worked example 1: RM4,000 a month
- Employee share: 11% × RM4,000 = RM440
- Employer share: 13% × RM4,000 = RM520
- Total monthly contribution: RM960
RM4,000 is the top of the RM3,980.01 to RM4,000 band, so the schedule and the percentages give the same answer here.
Worked example 2: RM6,000 a month
- Employee share: 11% × RM6,000 = RM660
- Employer share: 12% × RM6,000 = RM720
- Total monthly contribution: RM1,380
Note that crossing RM5,000 lowers the employer rate from 13% to 12%. KWSP notes that where a bonus pushes the wages of someone normally earning RM5,000 or less above RM5,000 in a month, the employer still pays 13% for that month.
How contributions are split between accounts
KWSP credits mandatory contributions into three accounts (KWSP: mandatory contribution, checked 19 October 2026):
| Account | Share | RM960 example | RM1,380 example |
|---|---|---|---|
| Akaun Persaraan (retirement) | 75% | RM720 | RM1,035 |
| Akaun Sejahtera (well-being) | 15% | RM144 | RM207 |
| Akaun Fleksibel (flexible) | 10% | RM96 | RM138 |
What EPF does to take-home pay
Only the employee share comes out of your pay. On RM4,000 gross, EPF reduces pay by RM440 to RM3,560 before SOCSO, EIS and income tax deductions. The employer share is paid on top of your salary. Use the salary calculator with an estimated deduction rate to see a rough take-home figure, and check your payslip for the exact amounts.
Common mistakes
- Using 13% for the employer share on wages above RM5,000.
- Expecting the exact percentage when the Third Schedule band gives a slightly higher amount.
- Forgetting that the rates change from age 60.
Dated figures on this page are tracked in the figures update log.
Frequently asked questions
What is the EPF contribution rate in Malaysia?
For Malaysian employees below 60, the employee share is 11% of monthly wages and the employer share is 13% for wages of RM5,000 and below, or 12% above RM5,000, according to KWSP.
How much EPF is deducted from a RM4,000 salary?
RM440 from the employee, with RM520 added by the employer, for a total of RM960 a month.
What are EPF rates after age 60?
For Malaysian employees aged 60 and above, KWSP lists an employee share of 0% and an employer share of 4%.
How is EPF split between accounts?
KWSP credits 75% to Akaun Persaraan, 15% to Akaun Sejahtera and 10% to Akaun Fleksibel.
Why is my EPF deduction not exactly 11%?
Employers use the wage bands in the Third Schedule of the EPF Act 1991, which are based on the top of each band and rounded up, so the amount can be slightly above an exact 11%.
Sources
- KWSP: contribution rates for members and employers (checked 19 October 2026)
- KWSP: EPF Act 1991 Third Schedule (checked 19 October 2026)
- KWSP: mandatory contribution account split (checked 19 October 2026)
Related tools
- Salary calculator — take-home pay estimate.
- Hourly to salary calculator — convert wages.
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