What are the statutory pension benefits in Malaysia?

In Malaysia, statutory pension benefits are managed through the Employee Provident Fund (EPF), which is a retirement savings fund ensuring members' retirement well-being.

Key elements of the EPF in Malaysia include:

• Both employees and employers contribute to the EPF. Employees typically contribute 11% of their monthly salary, although this percentage may vary based on salary level and the employee's age.

• Employers are required to contribute a percentage for employees earning a certain amount per month. The specific contribution rates are detailed in the 'Third Schedule,' which employers should refer to for precise contribution details (kwsp.gov.my/documents/d/guest/jadual-ketiga-bi-pdf-1?preview). All contributions must be rounded to the nearest ringgit.

• Employers are responsible for submitting both their share and the employee's share of contributions to the EPF. The employee's contribution can be deducted from their salary.

• Employees may withdraw their EPF contributions upon reaching the age of 55 or upon retirement. Options available include a full withdrawal or a flexible withdrawal to manage funds post-retirement.

• The EPF also provides several partial withdrawal options, such as Akaun Fleksibel (Flexible Account), age 50 withdrawals, and educational withdrawals, allowing employees to meet their financial needs over time.