Monthly and annual EPF split between you and your employer.
Total monthly contribution
—
Employee (monthly)
—
Employer (monthly)
—
Total annual contribution
—
Worked example
Take an employee under 60 earning RM5,000 a month. The employee share is 11 percent of wages, which is RM550. Because the wage is RM5,000 or less, the employer contributes at the higher rate of 13 percent, which is RM650. Together that is RM1,200 paid into the EPF account every month, or RM14,400 over a full year. Note that the employer share sits on top of your salary and is not deducted from your pay, so only the RM550 employee portion reduces your take-home. If the same person earned RM6,000 instead, the employer rate would drop to 12 percent, since the 13 percent rate only applies up to RM5,000 a month.
Item
Rate
Monthly (RM)
Employee
11%
550
Employer
13%
650
Total monthly
1,200
Total annual
14,400
How it is calculated
EPF, or KWSP, is Malaysia's mandatory retirement savings scheme for private-sector and certain public-sector workers. For employees below 60, the statutory employee rate is 11 percent of monthly wages. The employer rate depends on the wage: 13 percent where monthly wages are RM5,000 or less, and 12 percent where they are above RM5,000. From age 60, the employee share falls to 0 percent and the employer contributes 4 percent. These are statutory minimums, and either side may elect to contribute more. Contributions are split across the Akaun Persaraan, Akaun Sejahtera, and Akaun Fleksibel under the structure introduced in 2024, and the balance earns an annual dividend that has recently run between about 5.5 and 6.3 percent.
Frequently asked questions
How much does my employer contribute to EPF?
For employees under 60, the employer contributes 13% of monthly wages where wages are RM5,000 or less, and 12% where wages are above RM5,000. The employee contributes 11%. From age 60, the employee share is 0% and the employer contributes 4%. These are statutory minimums and either side may contribute more voluntarily.
Why does the employer rate drop from 13% to 12% at RM5,000?
The two-tier employer rate was introduced to reduce the payroll cost for lower-wage workers relative to higher earners. Employees earning up to RM5,000 a month attract the higher 13% employer rate, which adds more to retirement savings at the lower end of the wage scale. Earnings above RM5,000 carry the 12% rate. The employee rate of 11% stays flat across both tiers.
Is EPF deducted from my take-home pay or paid on top?
Only the employee share of 11% is deducted from your gross salary and reduces your take-home pay. The employer contribution sits entirely on top of your salary and is not taken from your pay packet. So on a RM5,000 salary you take home roughly RM4,450 after the RM550 employee EPF deduction, while your employer separately deposits RM650 into your account.
Can I contribute more than 11% to EPF voluntarily?
Yes. Both employees and employers can elect to contribute beyond the statutory rates. An employee can make voluntary top-up contributions to their own EPF account through the KWSP portal. Voluntary contributions above the mandatory 11% do not attract additional tax relief beyond the existing EPF relief cap, but they do earn the same annual dividend on the full balance.