How Much Employee Contribute in EPF: A Complete Guide for 2025

It is very important for every salaried employee in Malaysia to understand how the EPF works. The EPF helps Malaysians prepare for the future by providing money for their retirement. This guide takes a close look at how much workers are required to contribute to the EPF, the system it uses, involved rates, how it varies by wages and what it could mean for employee finances by 2025.

What Is EPF and Why Is It Mandatory?

EPF, operated by KWSP, is required for saving purposes for employees in both the private and non-pensionable sectors in Malaysia. The EPF Act 1991 governs it and it is designed to support Malaysians as they accumulate retirement savings during their jobs.

Employees and their employers are required to make payments into your Social Security account every month, based on the salary of the employee. The money from these contributions goes to the employee’s EPF account which includes two sections: 70% for retirement and 30% for withdrawing early.

The contribution rate for Employee EPF in 2025

Employee Contribution Rate

Starting in 2025, employees give 11% of their monthly salaries to the National Health Fund. Only Malaysian citizens and permanent residents who are not yet 60 are included in this percentage. Here is how it is used:

For those who are 60 years of age or older

After 60 years of age, employees are not required by law to contribute to EPF. The contribution rate will be lowered if you choose the program.

• The percentage for employees is 0% by default or can be changed up to 11%.
• Employer: 4%

Voluntary Contributions by Employees

Contributing more than the required 11% combined by both the employer and employee is voluntary for employees. These savings are referred to as Voluntary Excess Contribution as part of the EPF Self-Contribution scheme. A person can contribute up to RM100,000 per year for voluntary contributions in the following ways:

• FPX internet banking
• EPF kiosks
• EPF counters

If you want to increase your retirement savings, this is a good option for you.

How to Calculate EPF Contribution

You can use the following formula to get the employee’s EPF contribution:

Example:

• The gross salary earned each month is RM5,000.
• The employee must co-contribute RM550 which is 11% of RM5,000.

This amount is taken from the employee’s pay and transferred into their EPF account with the employer’s share.

EPF Contribution Table for Employees (2025)

Note: The employer’s contribution rate is 13% for employees earning RM5,000 or less, and 12% for employees earning more than RM5,000.

Special Cases for Employee Contributions

Certain categories of work do not require EPF contributions, only if this is explicitly arranged.

• Foreign workers (excluding permanent residents)
• Domestic helpers
• Self-employed individuals

Alternatively, they can choose to pay in extra money to EPF, as this usually yields better results than keeping their funds in a Malaysian fixed deposit.

EPF Contributions for People Working Part-Time or as Contract Workers

If workers under fixed-term, part-time or freelance contracts are paid and covered by contracts, they must contribute to CPF too. As with EPF for private sector employees, EPF for civil servants uses the rule of 11% from employees and 13% or 12% from employers.

If a person is employed by more than one company, all employers contribute what they should and the employee contributes 11% of the total earnings from all the jobs.

EPF Deduction for Workers Having Multiple Jobs

When employees work at more than one place, their EPF payouts will be managed through one EPF membership account. Employees need to contribute from their pay from each job, while the employer makes separate choices for each employee. Except for alternatives, there is no combined cap for retirement accounts.

How Your EPF Payment Affects Your Monthly Salary

Because EPF money is automatically pulled from your earnings, your salary after taxes is 11% less. For example:

• The amount shown on the pay slip as Gross Salary is RM4,000.
• RM440 is deducted from your basic salary.
• You will receive RM3,560 as your net income.

Because part of your income goes to EPF, it also acts as a method of saving money for the future.

Dividend Returns on EPF Contributions

Annual dividends from the EPF are dependent on how the fund’s investments have performed. In the last few years, dividend rates have been as follows:

• 2020: 5.2%
• 2021: 6.1%
• 2022: 5.35%
• 2023: 5.5%
• In 2024: 5.8%

Since EPF contributions and their earnings are tax-free and added to over time, it is one of the safest and best places for Malaysians to save.

Special Cases: EPF Contributions During Unpaid Leave and Salary Deductions

If a person is on unpaid leave, EPF does not require any contributions from them during that period. Also, EPF deduction occurs before the calculation of SOCSO and income tax, so the 11% is spent on gross salary.

How to Check EPF Contribution Statement

Individuals can check their Employees’ Provident Fund contributions online each month.

• KWSP i-Akaun (Online Portal)
  Access your account via the official login page:
  https://iakaun.kwsp.gov.my/portal/member/login
• KWSP i-Akaun (Mobile App)
  Download the app to view your EPF statements anytime:
   
  • Google Play Store
     
  • Apple App Store
     
• EPF Kiosks
  Located at various branches and public locations, EPF kiosks allow you to print statements and check balances using your MyKad and thumbprint.
   
• EPF Outlet Counter Assistance
  Visit any EPF branch for in-person support, account updates, or to request printed statements

Both the employer and employee add contributions, dividends are credited to the account and a person can withdraw funds when eligible.

Using your EPF Savings for Your Retirement

Making EPF a part of your long-term plan for retirement gives you many benefits.

• Strong effort to set aside a part of earnings regularly
• Constant and ongoing growth of earnings
• Money could be withdrawn from Account 2 for housing, education and medical expenses.

Do remember to review your EPF balance now and then and consider adding extra amounts if possible.

For business owners or new employers, understanding EPF requirements is key to staying compliant. Learn more about company compliance support at HL Khoo Group.

Key Takeaways

• Employees who are not yet 60 have to contribute 11% of their monthly wages to EPF.
• The employer withholds the amount of the contributions from your pay.
• It is possible to top up your Employees Provident Fund by up to RM100,000 annually.
• Those who are 60 years old can contribute if they want.
• EPF distributes annual dividends and reassures customers that their investments are developing safely.
• Every Malaysian citizen and permanent resident with a contract of service has to pay into the EPF. 

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