A contribution is the amount of money paid to the EPF (Employees Provident Fund) which is calculated based on the monthly wages of an employee and then credited into the employee's EPF account. The EPF contributions for each employee are made up of the employee's and employer's portions.
Contribution Rates
The rate of contribution is a percentage of the employee's monthly wages that must be paid as EPF contribution. Each employee is required to contribute 11 % of his/his monthly income and this is added by the employer's contribution of 12 %. The rates of employee's and employer's share of contribution are subject to changes set by the Government. In order to facilitate the payment of contributions, the amounts payable are provided in the Third Schedule of the EPF Act 1991. Both the employee and employer, or either of them, may also opt to contribute at rates higher than what is required.
With a few exceptions, all individuals who work for a wages, as defined by the various Malaysia laws, are required to make EPF contributions. They include:
Directors who are paid wages.
Part-time, temporary and probationary employees.
An employee who is 55 years or older and has yet to withdraw all of his/her savings.
An employee who is 55 years and above and has never been a member of EPF.
An employee who has withdrawn his savings under the Pensionable Employees Withdrawal, and works with an employer other than the Federal or State Governments or any statutory body or local authority.
An employee who has withdrawn his savings under the Incapacitation Withdrawal and had since recovered and is re-employed.
The employee's share is deducted from the employee's wages and contributed to the EPF. The employer's share is the amount of money contributed by the employer to match the employee's share of contribution for the employee's retirement benefit.
They must be paid to the nearest ringgit at the rate specified in the Third Schedule of the EPF Act 1991.
We do not provide this service. However, after you have opened an account with EPF board, you can transact through us to purchase units of funds that are available for EPF Account 1 investment.
You are allowed to invest 20% of the savings amount in excess of your Basic Savings amount required in Account 1 through external fund managers or distributors appointed by the Ministry of Finance.
Where can i get the forms intended for EPF Account 1 withdrawal?
A:
You may download the relevant forms in Fundsupermart website by going to TRANSACTIONS-> FORMS, from the KWSP website at http://www.kwsp.gov.my or you may obtain it from any KWSP branch.
For EPF purchases of the following funds, you are required to fill up the original In-House KWSP 9N Form. You may click here to request for the forms to be mailed to you.
Am Investment Services Berhad
Prudential Fund Management Berhad
OSK-UOB Unit Trust Management Berhad
OSK-UOB Unit Trust Management Berhad - Smart Series Funds
Please be informed that starting from 1st October 2008, KWSP will cease to accept any withdrawal application using photocopied application forms or supporting documents photocopied using recycled paper.
What is an EPF Account 1 Basic Savings amount requirement?
A:
Basic Savings is an amount of savings to be put aside in Account 1 progressively at various pre-determined age levels so as to enable a member to accumulate a minimum savings of RM120,000 at age 55 years.
A member needs to have the required amount of savings at the pre-determined age levels. 20% of 'amount in excess' of the 'basic sum' can be invested in products offered by approved Investment Institutions.
The 'amount in excess' is at least RM5000. If you have this 'amount in excess', please use the formula below to calculate the 'permitted amount to be invested'.
Permitted amount to be invested = (Account 1 – Basic Savings) x 20%
How do I invest in unit trust by using EPF Account 1 through Fundsupermart?
A:
First you need to update your EPF account number into your FSM investment account.
To update your account, click on MY INVESTMENTS-> UPDATE ACCOUNT-> ACCOUNT DETAILS. After you have updated your account, the EPF payment method will be available when you next make a purchase.
All purchase orders with payment through EPF Account 1 will only be processed after FSM receives the following documents:
KWSP 9N (AHL) form (with black colour thumbprints)
Fund Manager Account Opening Form and In-House Subscription Form
A copy of IC (both front and back) on a piece of A4 paper. Click here for example.
EXCEPT for funds under OSK-UOB Investment Management Berhad and Kenanga Investors Berhad where you only REQUIRED to provide a certified true copy of IC (both front and back) without thumbprints.
When will my EPF Account 1 buy orders be transacted?
A:
Purchase orders will be processed on the same business day that all the required documents are received before 3pm. If the documents are received after 3pm or on a non business day, orders will be processed on the next business day.
The transaction date for most fund subscriptions through EPF Account 1 will be the same business day on which the required documents are received by Fundsupermart.com before 3pm, EXCEPT AmBon Islam, TA Income Fund and funds under the management of Pheim Unit Trust Berhad, the transaction date for subscriptions will only be informed by the fund manager upon successful EPF Account 1 withdrawal.
As EPF has launched the e-Pilihan Pelaburan Ahli (e-PPA) system for all EPF forms submission this year, forms with thumbprints issues and incorrect margins (when forms are printed from a printer or photocopied) will be rejected by the e-PPA system and the whole set of new submission documents with new KWSP 9N forms must be resubmitted to Fundsupermart. Any charges or loss resulted by forms rejection shall be borne by the investors.
How do I redeem a unit trust holding invested through EPF Account 1?
A:
First you need to place a sell order online for the EPF Account 1 invested fund you wish to redeem. Upon the confirmation of your sell order, you will be prompted to print the Fund Manager in-house Redemption Form. Please print and fill up the form, then send it back to us. We will only process the redemption order after we received the completed and signed Fund Manager in-house Redemption Form.
When will my EPF Account 1 sell orders be transacted?
A:
Sell orders for funds invested through your EPF Account 1, will be processed on the same business day whereby the in-house redemption form is received before 3pm. If document is received after 3pm; or, on a non-business day, order(s) will be processed on the next business day.
The transaction date for redemption of most EPF Account 1 invested holdings will be the same business day on which the Fund Manager in-house redemption form is received by FSM before 3pm. If document is received after 3pm; or, a non-business day, order(s) will be transacted on the next business day.
What form do I need to submit for EPF switching order?
A:
You need to submit the In-House switching form. The form is downloadable at Transactions > Forms.
All EPF Intra Switching will only be processed after FSM receives the complete documents. Switching order will be processed on the same business day if all required documents are received before 3pm. If the documents are received after 3pm or a non business day, orders will be processed on the next business day.
EXCEPTION:
For fund switching under the management of OSK-UOB Unit Trust Management Berhad and OSK-UOB Unit Trust Management Berhad - Smart Series Funds, you need to submit In-house Switching form and a Master Application form.
Is there anything else about investing with EPF Account 1 that I must know?
A:
You may purchase as many funds up to the amount allowed and your preference by only ONE fund manager at a time. This means the "shopping cart" will only allow EPF Account 1 fund purchase by one Fund Manager at a time.
If you have a "Pending" order of EPF, you may void the order if you wish at TRANSACTIONS-> VOID ORDERS. Upon voiding, you may place new EPF Account 1 purchase order.
Transacted orders are irrevocable. If this is the case, you have to wait for three months as withdrawal could only be made at intervals of three months from the date of the last withdrawal.
