Pension system in Malaysia - Pension Funds Online

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• The EPF is publicly managed and financed through contributions amounting to 23% of the employees' payroll. Of this, the employee contributes 11% and the employer 12%. Employers are obliged to contribute at least 12%, but can voluntarily pay a higher rate.

• contribution rates alter when the employee reaches 55

• employee is still liable for EPF contributions (and this continues to the age of 75

• employer's share is reduced to 6%

• employee's to 5.5%

• multi-purpose savings fund that allows withdrawals to be made to finance housing, education and medical expenses.

• can opt to withdraw part of their savings at any time.

• EPF is tax deductible up to MYR 5,000

• withdrawn when the account holder reaches the age of 55, becomes incapacitated or leaves the country

• postponed by continuing contributions or by annually withdrawing the dividend on the savings.

• Only 20% of the balance in excess of the basic savings amount could be invested

• pproved investment institutions.

• The EPF provides no compensate for any losses resulting from such investments.

• guaranteed minimum return on EPF savings does not apply to savings transferred to external funds managers.

• 30% of monthly contributions