EPF Calculator Malaysia 2025: Employee & Employer KWSP Contributions
Calculate your monthly EPF contributions, employer contributions, and yearly retirement savings with dividend projections. Free, instant, and private.
EPF calculated on salary up to RM10,000 cap
Affects contribution rate for ages 55+
Optional — for projection accuracy
Historical range: 5.0% – 6.9%
What Is EPF (KWSP)?
The Employees Provident Fund (EPF), known in Malay as Kumpulan Wang Simpanan Pekerja (KWSP), is Malaysia's national retirement savings scheme. Established in 1951, it is one of the world's oldest and largest provident funds, managing over RM1 trillion in assets for more than 15 million members.
Every month, both employees and employers make mandatory contributions to the employee's EPF account. These contributions are invested by EPF across a diversified portfolio of equities, bonds, real estate, and infrastructure, both in Malaysia and internationally. The returns are distributed annually as dividends.
11%
Employee Contribution
Of monthly salary
12–13%
Employer Contribution
Additional, not from salary
5.0–6.9%
Historical Dividends
Declared annually
How EPF Contributions Work
Employee EPF Contribution (11%)
Every month, 11% of your gross salary is deducted and deposited into your EPF account. This deduction applies to your base salary and any recurring bonuses or commissions. Most fixed allowances (travel, housing) are not subject to EPF. The maximum statutory employee contribution is RM1,100/month. Employees can elect to contribute more (up to 100% of salary) for faster retirement savings growth.
Employer EPF Contribution (12–13%)
Your employer contributes an additional 13% of your salary (for salaries ≤ RM5,000) or 12% (for salaries > RM5,000). This is not a deduction from your salary — it's an extra contribution on top of what you earn. The combined employee + employer contribution typically totals 23–24% of your monthly salary going directly into retirement savings.
EPF Account Structure (Account 1 & 2)
Your contributions are split into two accounts: Account 1 (Akaun Persaraan) receives 70% of contributions and is reserved for retirement — it can only be fully accessed at age 55, though the i-Invest program allows partial use for unit trust investments. Account 2 (Akaun Sejahtera) receives 30% and can be partially withdrawn before retirement for home purchases, education, healthcare, and Hajj.
EPF Contribution Rates by Age & Salary
| Category | Employee | Employer |
|---|---|---|
| Age < 55, salary ≤ RM5,000 | 11% | 13% |
| Age < 55, salary > RM5,000 | 11% | 12% |
| Age 55–60 | 5.5% | 6.5% |
| Age 60–65 | 5.5% | 6.0% |
| Age > 65 | 5.5% | 5.5% |
| Foreign worker | 11% | RM5.00 flat |
| Voluntary (self-employed) | Any amount | — |
Rates effective as of 2025. For EPF contribution rates for employees earning below RM5,000, the statutory rate applies regardless of whether the employer is registered under the SOCSO Act or not.
EPF Tax Relief & Benefits
Income Tax Relief
Employee EPF contributions are eligible for personal income tax relief of up to RM4,000 per year. This directly reduces your chargeable income and can lower your PCB deduction.
Employer Tax Deduction
Employer EPF contributions are tax-deductible as a business expense, up to 19% of the employee's remuneration. This encourages employers to contribute above the statutory rate.
Guaranteed Dividends
Under the EPF Act 1991, the government guarantees a minimum dividend rate of 2.5% per annum. Historically, EPF has consistently paid 5–6% — well above most fixed deposits.
Compounding Growth
EPF dividends are reinvested annually. With consistent contributions and compound interest, a 25-year-old earning RM5,000/month could accumulate over RM1 million by age 55.
EPF Calculator — Frequently Asked Questions
What is the current EPF contribution rate in Malaysia?
For 2025, employees contribute 11% of their monthly salary to EPF. Employers contribute 13% for employees earning RM5,000 and below, and 12% for those earning above RM5,000. Employees above age 55 contribute at reduced rates (5.5%).
How do I calculate my monthly EPF contribution?
Multiply your monthly salary (base pay + recurring bonuses) by 11% for the employee portion. For example: RM5,000 × 11% = RM550/month. The maximum statutory employee contribution is capped at RM1,100/month. Use the EPF calculator above to get an instant calculation with employer contributions included.
Does EPF contribution include overtime and allowances?
EPF is generally calculated on your base salary plus any fixed or recurring bonuses, commissions, and incentives. Most variable payments (overtime, one-off bonuses) and fixed allowances (travel, housing) are not subject to EPF. Check your payslip or consult KWSP guidelines for your specific situation.
Can I contribute more than 11% to EPF?
Yes. You can voluntarily increase your employee contribution above the statutory 11% rate — up to 100% of your salary. Any additional contributions are also eligible for the RM4,000 annual tax relief. Contact your employer's HR or fill out KWSP Form 17A (Khas) to set up a higher contribution rate.
What happens to my EPF if I change jobs?
Your EPF account stays with you for life. When you change jobs, your new employer will contribute to the same EPF account number. There is no need to transfer or close your account. If you have multiple EPF accounts from different periods, you can consolidate them through KWSP.
What is the EPF dividend rate history?
EPF has a strong track record of competitive dividends: 2024: 5.50% (Conventional) / 5.25% (Shariah), 2023: 5.35% / 5.00%, 2022: 5.35% / 4.75%, 2021: 6.10% / 5.65%, 2020: 5.20% / 4.90%, 2019: 5.45% / 5.00%, 2018: 6.15% / —, 2017: 6.90% / —.
Can foreigners working in Malaysia opt out of EPF?
Foreign workers and expatriates are required to contribute to EPF at 11% (employee), but the employer contribution is a flat RM5.00 per month. Expatriates with a valid work permit may apply for an exemption from EPF contributions, but this is optional. Upon leaving Malaysia, foreigners can withdraw their full EPF balance.
Disclaimer: This EPF calculator provides estimates for educational purposes only. Actual EPF contributions may vary based on your specific salary structure, allowances, and employment terms. EPF dividend rates shown are historical and do not guarantee future returns. For official information, visit kwsp.gov.my or consult a qualified financial advisor. DuitTools is not affiliated with KWSP.