KUALA LUMPUR, April 4 — The Employees Provident Fund (EPF) has long been regarded as one of the biggest benefits of full-time employment, especially among older generations.
However, with financial influencers gaining traction on social media, the EPF has recently gained new appeal among late millennials and Gen Z workers.
Its voluntary contribution schemes, namely i-Saraan and i-Suri, are now seen as lucrative long-term investments, thanks to the power of compounding returns.
In fact, a Singaporean financial influencer recently made headlines after stating that Malaysians are “sitting on a huge goldmine” called EPF, with return rates that far outperform Singapore’s Central Provident Fund (CPF).
While CPF account returns range between 2.5 and 4 per cent, EPF return rates have typically hovered above 5 per cent over the last 10 to 20 years.
On March 13, Finance Minister II Datuk Seri Amir Hamzah Azizan told Parliament that total contributions received for i-Saraan — a voluntary scheme under EPF — nearly doubled from RM1.44 billion in 2023 to RM2.6 billion in 2024.
Similarly, the number of i-Suri recipients receiving government incentives surged by 77 per cent, from 42,759 members in 2023 to 75,196 members in 2024.
If you are not yet part of these statistics, here’s how you can hop on the bandwagon.
Get the i-KWSP app first
The easiest way to join i-Saraan is through the i-KWSP app on your mobile phone.
Once you open the app, tap on the “Don’t have an EPF account?” option to register for a new account.
You will then be directed to complete the e-KYC, or electronic Know-Your-Customer, process. This electronic identity verification process, which uses facial recognition technology, allows you to activate your EPF account. You will need to submit a picture of your IC and a selfie during the process.
Once you have successfully opened your EPF account, the app will guide you through a series of steps to activate your i-Akaun.
Alternatively, you can register online via the i-Saraan registration portal or by visiting the nearest EPF office.
No minimum contribution is required under i-Saraan, but contributors can contribute up to a maximum of RM100,000 per year.
Contributors below the age of 60 also receive a special incentive of 15 per cent of their total contributions, capped at RM500 per year and RM5,000 over their lifetime.
What if you are just a housewife with no income?
Well, you can still benefit from EPF’s i-Suri scheme.
The registration process and contribution cap for i-Suri contributors are similar to those for i-Saraan contributors.
However, to qualify for i-Suri, you must first be registered under the National Poverty Data Bank (eKasih) as of November 30 of the previous year. Registration can be done by visiting the respective district or state development offices.
Contributors will receive a matching contribution of 50 per cent for every ringgit contributed to the i-Suri scheme, with a maximum incentive of RM300 per year.
This incentive is subject to a lifetime limit of RM3,000 per individual under the age of 55.
Can I top up more than my mandatory contribution?
Yes, you can
The easiest way to do so is by topping up your EPF contribution through the i-KWSP app.
Scroll down the home page and tap on the “Top Up” option under the “Increase Savings” tab. The minimum voluntary contribution is RM10 and you can add up to RM100,000 per year.
