TEL:86-755-82143422

Home >  Information Trading > Malaysia Employees' Provident Fund

Malaysia Employees' Provident Fund

Updated:2017-8-10 17:50:05    Source:www.tannet-group.comViews:239

Malaysia Employees' Provident Fund (Kumpulan Wang Simpanan Pekerja, KWSP) commonly known by the acronym EPF (Kumpulan Wang Simpanan Pekerja) is a Malaysian government-owned company under the Ministry of Finance. It manages the compulsory savings plan and retirement planning for private sector workers in Malaysia.

The EPF also a social security institution formed according to the Laws of Malaysia, Employees Provident Fund Act 1991 (Act 452) which provides retirement benefits for members through management of their savings in an efficient and reliable manner. The EPF also provides a convenient framework for employers to meet their statutory and moral obligations to their employees.

Mandatory Contributions
A contribution constitutes the amount of money credited to members' individual accounts in the EPF (Employees' Provident Fund). The amount is calculated based on the monthly wages of an employee. Current contribution rate is in accordance with wage/salary received. For employees who receive wages/salary of RM5, 000 and below, the portion of employee's contribution is 11% of their monthly salary while the employer’s contributes 13%. For employees who receive wages/salary exceeding RM5, 000 the employee's contribution of 11% remains, while the employer's contribution is 12%.

Investment Allocation
Your monthly contributions are invested in a number of approved financial instruments to generate income. They include Malaysian Government Securities, Money Market Instruments, Loans & Bonds, Equity and Property.

Dividends
The EPF (Employees' Provident Fund) ensures that your savings are secure and receive reasonable dividends. In fact, it guarantees a minimum of 2.5 Per Cent Dividend annually. To ensure dividend payments, the EPF invests your contribution in approved financial instruments for optimum returns.

Dividends are paid annually into your account. The dividend rate declared by the EPF (Employees' Provident Fund) is subject to the returns from investments made in the approved instruments.

Annual Dividends, on the one hand, are calculated based on the opening balance of your savings as at 1 January of each year. Monthly Dividends credited into your account, on the other hand, are based on the monthly contributions received.

Contact For Malaysia Service
If you have further enquire, please do not hesitate to contact Tannet at anytime, anywhere by simply visiting Tannet’s website www.tannet-group.net, or calling Malaysia Office hotline by 603- 2141 8908 or email to tannetcom88@gmail.com.
Add: Unit 6.06, Level 6, Amoda 22, Jalan Imbi, 55100, Kuala Lumpur, Malaysia.

Previous:US Laws of Labor Department     Next:Malaysia Social Security Information