Maximizing EPF Voluntary Contributions for a Secure Retirement

In addition to the mandatory contributions through the conventional salary deduction method, EPF members can also make voluntary contributions to their savings. These EPF Voluntary Contributions benefit not only those without a fixed monthly salary but also salaried employees who wish to enhance their savings for a better and more comfortable retirement.

What is EPF Voluntary Contribution and How Does it Work?

Recent findings indicate that only four percent of Malaysian retirees can live comfortably with their finances after retiring. To ensure adequate retirement funds, EPF Voluntary Contributions provide a valuable alternative. These options allow self-employed individuals and freelancers, for example, to contribute to their EPF savings, ensuring financial security upon retirement.

EPF Voluntary Contributions act as supplements to the mandatory contributions made by both employers and employees (employees contribute 11 percent of their monthly salary, while employers contribute 13 percent of the employee’s salary). Additionally, it benefits those who already make mandatory EPF contributions but wish to optimize their savings further.

Types of EPF Voluntary Contribution in Malaysia

Currently, there are four types of EPF Voluntary Contributions in Malaysia. Each scheme offers its own benefits aimed at different types of income background.

1. EPF Self-Contribution

The Self-Contribution program can be considered as the basic form of voluntary contribution offered by EPF. It protects workforces that are not covered under the EPF Act 1991 which include those who are not employed under the conventional employment arrangement. For instance, the small and medium entrepreneurs, self-employed personnel, as well as employees working with foreign employers.

EPF Self-Contribution is open to:

• • • Malaysian citizens, or permanent residents;
    • Below 75 years old;
    • Registered EPF member.

2. EPF i-Saraan

Introduced in 2018, the i-Saraan program aims to encourage gig workers and other individuals without fixed incomes to save extra for retirement. This program offers benefits such as:

• • • Incentive of 15 percent of total contributions for the year, up to RM500. Lifetime incentive limit of RM5,000 or until the member reaches 60 years of age, whichever comes earlier;
    • Tax reliefs;
    • Death benefits.

This program is open to:

• • • Malaysian citizens;
    • Below 60 years old;
    • Must be self-employed with no employer;
    • Registered EPF member.

3. EPF i-Suri

Another EPF Voluntary Contribution scheme that you can choose is the i-Suri program. This program dedicated to housewives and homemakers as a means to save and invest for their old age. Housewives can contribute a portion of the allowance they receive from their spouse or any other family members into their savings through this program.

Members who register for the i-Suri scheme can enjoy benefits such as:

• • • Incentive of 50 percent for every RM1 contributed, capped at RM300 for the current year. Incentive capped at RM3,000 or until the member reaches 55 years of age, whichever comes first;
    • Tax relief;
    • Death benefits.

This program is open to:

• • • Malaysian citizens;
    • Below 55 years of age;
    • Registered EPF member;
    • Housewives registered under eKasih (the National Poverty Data Bank)

Another similar scheme offered by EPF is i-Sayang KWSP, where two percent of husbands’ salaries will be deducted and transferred into their wife’s EPF account every month.

4. Account 1 Top-Up Savings

The last type of EPF Voluntary Contribution in Malaysia is the Account 1 Top-Up, which allows members to contribute directly to their loved ones’ EPF savings, such as parents, spouses, children, and so on. Recipients are not restricted only to EPF members; however, there is a specific form to be filled in to enable the recipients to receive the contributions made for them.

How to Pay EPF Self Contribution Online?

For non-members, they need to first register and open an EPF account known as i-Akaun through the online application. To register for EPF i-Akaun, you can refer to this article. Details such as EPF number and savings balance can be reviewed by logging into i-Akaun.

1. i-Akaun

You can make your EPF Voluntary Contributions via EPF i-Akaun as follows:

1. Log in to your i-Akaun and select ‘Add Contribution’;
2. Enter your preferred amount to contribute and slide the bar to proceed;
3. There is no minimum per transaction, but it must not exceed RM100,000 in voluntary contributions annually.

2. Bank Transfer

You can also make your voluntary contribution via any preferred bank transfer:

1. Open your bank’s online application;
2. Find EPF (or Kumpulan Wang Simpanan Pekerja) as a payee, usually under the ‘Payments’ or ‘Bills’ section;
3. Fill in your details, including your EPF number;
4. Deposits to your EPF account will be transferred within 3 working days.

3. Bank Agents

Next, let’s look at the methods for making voluntary contributions via bank agents. Members will need to fill in the self-contribution form and submit it along with their payments. There are four Bank Agents in Malaysia offering this service: Bank Simpanan Nasional (BSN), Maybank, Public Bank, and RHB Bank.

4. EPF Counters

EPF offices nationwide accept deposits for voluntary contributions. Deposit in cash is capped at RM500.

Maximise Your Retirement Savings with EPF Voluntary Contributions

In conclusion, EPF Voluntary Contributions offer a flexible and effective way to enhance your retirement savings. Whether you choose to contribute through EPF Self-Contribution, i-Saraan, i-Suri or Account 1 Top-Up Savings, taking advantage of these options can significantly boost your financial security in your golden years.

By being proactive and maximizing your voluntary contributions, you can enjoy a more comfortable and worry-free retirement. Additionally, investing in health insurance can provide crucial financial support during retirement. Health insurance helps cover medical expenses, ensuring that unexpected healthcare costs do not deplete your retirement savings.

This financial security allows you to focus on enjoying your retirement years without the stress of potential healthcare expenses. For more info on the best health insurance in Malaysia, visit qoala.my. Qoala is the best platform for comparing and renewing insurance in Malaysia.