Voluntary contributions with Retirement Incentives, also known as i-Saraan EPF, is one of the initiatives introduced by the Employees Provident Fund (EPF). It aims to encourage self-employed individuals or those without a fixed source of income to make voluntary contributions towards retirement savings according to their ability.
i-Saraan EPF: The Best Saving Method for Retirement Protection
i-Saraan EPF or Voluntary Contributions with Retirement Incentives allows self-employed EPF members or those without a fixed income to make voluntary contributions. At the same time, members who contribute for retirement savings purposes will also receive additional contributions from the government.
Through i-Saraan, members can make contributions at any time until they reach the maximum limit of voluntary contributions, which is RM60,000 per year. This scheme provides flexibility for members to save for their retirement according to their financial capacity.
1. What is i-Saraan EPF?
i-Saraan KWSP is open to all individuals (both men and women) who are self-employed with irregular income sources. It differs from i-Suri KWSP, which is limited to housewives or single mothers registered with e-Kasih. Essentially, i-Saraan is designed to:
- Provide a channel for self-employed individuals without a regular income source to save for retirement purposes;
- Increase the number of self-employed individuals saving with the EPF;
- Demonstrate the government’s concern for self-employed individuals by providing incentives for their retirement savings;
- Reduce the number of elderly individuals relying on assistance from the Department of Social Welfare (JKM) programs.
2. What are the Benefits for Members under i-Saraan EPF?
There are several benefits that KWSP members can enjoy by contributing to the i-Saraan KWSP scheme, including:
Contributors have the opportunity to earn annual dividends on their retirement savings with KWSP.
Eligible members can receive a death benefit of RM2,500 (subject to KWSP’s terms and conditions).
Withdrawal of Savings
Contributors can make voluntary contributions based on their financial capability and can withdraw from their KWSP savings when necessary.
Savings in the KWSP account are eligible for income tax relief.
Contributors can receive a special government incentive of 15 percent. This incentive has been provided from 2018 to 2022. However, it is subject to a maximum amount of RM250 per year for members below 55 years old.
3. Who Can Apply for i-Saraan EPF?
To apply for i-Saraan KWSP, individuals need to meet the following eligibility criteria:
- Malaysian citizen;
- Below 55 years old;
- Self-employed – individuals who engage in income-generating activities and are not employees, such as farmers, small traders, insurance and property agents, and others;
- KWSP members.
Individuals who meet the above eligibility criteria and are interested in making voluntary contributions through i-Saraan can register at any nearby KWSP office.
4. What is Required for i-Saraan EPF Registration?
You will need the following documents for i-Saraan KWSP registration:
MyKad (National Identity Card);
- i-Saraan Form – KWSP 16G (M) (for first-time registration);
- i-Saraan Form – KWSP 6A (2) (for subsequent contributions);
- Cash and cheque payment or online banking (form usage not required).
5. How to Register for i-Saraan EPF Online 2023?
To register for i-Saraan KWSP online, you can follow these steps:
- Visit the i-Saraan Registration Portal to register online;
- Fill in the required information, such as your identification number, KWSP number, mobile phone number, and email address;
- Verify that all submitted information is correct, then tick (/) the provided box;
- Click the Submit button;
In addition to online registration for i-Saraan KWSP, you can also register for i-Saraan at any nearby KWSP office by following these steps:
- Download the registration forms and required documents, including Form KWSP 16G (M) and Form KWSP 6A (2);
- Fill in the forms completely and accurately;
- Bring the completed forms along with your identification card (MyKad) to the nearest KWSP office;
- Inform the staff that you would like to register for i-Saraan;
i-Saraan KWSP: Retirement Savings Planning for Individuals without Fixed Income
The i-Saraan KWSP facility helps individuals, especially those without steady employment, to have retirement savings. KWSP savings can assist contributors in being better prepared for unforeseen circumstances, particularly from a financial standpoint, after retirement.
As one’s age increases, more funds are needed to sustain a livelihood, such as medical expenses and other necessities. This is where KWSP savings play a role in safeguarding members by providing retirement benefits to meet future needs and well-being.
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