Employers' Guide to EPF

What is EPF

Employees’ Provident Fund (EPF) or Kumpulan Wang Simpanan Pekerja (KWSP) is a government agency that manages the retirement planning and compulsory saving for private sector employees.


EPF contributions is based on nationality and not tax residence status. Hence, it is mandatory for Malaysians and those who reside permanently in Malaysia. It is also not compulsory to foreigners.

As an employer, you will have to register your employees with EPF if they have not been registered before the first contribution can be made.

Both employee and employer need to pay EPF contribution. For the employee, it is a deduction from gross pay in the payslip while for the employer contribution, generally, it will appear on the payslip, and it is the employer’s responsibility to pay for the contribution.


In general, EPF has a guaranteed minimum dividend of 2.5% and considering the year 2021 dividend rate, it stands at 5.2%.

You can withdraw your full savings at the age of 55 and by the age 50, you are allowed to withdraw up to 30% of the full savings amount. However, if a person with EPF account becomes disabled or emigrates, a full withdrawal can also be made. 

 EPF Payment

EPF payment can be made via e-Caruman or online transaction and the following are the details on how to pay via these two platforms.

1.   Payment via e-Caruman

If you opt for payment via e-Caruman, you wil have to create a KWSP i-Akaun. Through this site, you are required to submit all your employee contribution details and to submit EPF contribution Form (Form A). Once submitted, then you can proceed with payment.

Note: You should download the receipt before exiting the EPF website once your payment is successful for bookkeeping purposes.
Click here if you wish to be directed to KWSP i-Akaun.

2.   Payment via online banking

To make payment via online banking, you will have to generate EPF Bank file that contains your employee’s distribution details and it needs to be submitted to your bank portal.

The following is the current list of banks that can be used to pay EPF contributions.

  •  MBSB Bank
  •  Maybank (M2u)
  •  RHB Bank
  •  Public Bank
  •  Bank Muamalat
  •  Alliance Bank
  •  Hong Leong Bank
  •  Bank Islam
  •  Cimb Bank
  •  Kuwait Finance House 

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