1. What is EPF in Malaysia?

The Employees Provident Fund (EPF) is Malaysia's national social security organization which provides retirement benefits for members through management of their savings. Both employees and employers contribute a percentage of the employee's salary to the fund.

2. How EPF Calculation Works

The standard EPF calculation:

Where:

• Salary — Monthly gross salary in RM
• 11% — Standard employee contribution rate
• 13% — Standard employer contribution rate

Note: Contribution rates may vary for different age groups and salary brackets.

3. Importance of EPF Contributions

Details: EPF serves as a compulsory savings and retirement plan for Malaysian workers, providing financial security post-retirement. The fund also offers various withdrawal schemes for specific purposes.

4. Using the Calculator

Tips: Enter your monthly gross salary in RM. The calculator will compute both employee and employer contributions along with the total EPF amount.

5. Frequently Asked Questions (FAQ)

Q1: Is the EPF contribution rate always 11% for employees?
A: For employees below age 60, the standard rate is 11%, but employees can opt to contribute at 8% or 9% rates.

Q2: Are there maximum contribution limits?
A: Yes, employee contributions are capped at RM4,000 per month (RM440 at 11% rate).

Q3: How is EPF different from SOCSO?
A: EPF is for retirement savings while SOCSO provides social security protection against work injuries and invalidity.

Q4: When can I withdraw my EPF?
A: Full withdrawal at age 55, but partial withdrawals are allowed for specific purposes like education, housing, or medical needs.

Q5: What if my salary exceeds RM20,000?
A: Employer contribution is capped at 13% of RM20,000 (RM2,600) even if salary exceeds this amount.