{"id":3787,"date":"2020-05-11T15:51:00","date_gmt":"2020-05-11T15:51:00","guid":{"rendered":"https:\/\/www.kiatassociates.com\/?p=3787"},"modified":"2023-07-17T16:17:50","modified_gmt":"2023-07-17T16:17:50","slug":"what-is-epf-i-saraan-and-how-does-it-benefit-you","status":"publish","type":"post","link":"https:\/\/www.kiatassociates.com\/index.php\/2020\/05\/11\/what-is-epf-i-saraan-and-how-does-it-benefit-you\/","title":{"rendered":"What is EPF i-Saraan and how does it benefit you?"},"content":{"rendered":"\n<p>We have heard a lot about contributing to Employees Provident Fund (EPF) &#8211; a compulsory retirement fund for those employed set up by our Malaysian government, whereby employers will deduct a percentage of 7%-11% from employees\u2019 salary while contributing additional part of 12%-19% to this retirement fund as a benefit to their employees. As the name suggest, this is a fund for the employees. So how about the employers, the bosses or those self-employed like entrepreneurs and freelancers?<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>EPF i-Saraan Retirement Scheme<\/strong><\/h2>\n\n\n\n<p>As part of our government\u2019s effort to encourage more people to save money for retirement, EPF has introduced the i-Saraan retirement scheme since 1 January 2018 mainly for the self-employed. Other than the minimum guaranteed return of 2.5% for contributors as given under Section 27 of the EPF Act 1991, another goods news is that the government will match up to 15% (up to maximum of RM250) of the amount contributed by those under this i-Saraan retirement scheme.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"683\" height=\"966\" src=\"https:\/\/www.kiatassociates.com\/wp-content\/uploads\/2023\/07\/aa68bc_2d6263a6717b409b8823bfa0c1de76a3mv2.webp\" alt=\"\" class=\"wp-image-3788\" srcset=\"https:\/\/www.kiatassociates.com\/wp-content\/uploads\/2023\/07\/aa68bc_2d6263a6717b409b8823bfa0c1de76a3mv2.webp 683w, https:\/\/www.kiatassociates.com\/wp-content\/uploads\/2023\/07\/aa68bc_2d6263a6717b409b8823bfa0c1de76a3mv2-212x300.webp 212w, https:\/\/www.kiatassociates.com\/wp-content\/uploads\/2023\/07\/aa68bc_2d6263a6717b409b8823bfa0c1de76a3mv2-600x849.webp 600w\" sizes=\"auto, (max-width: 683px) 100vw, 683px\" \/><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Eligibility for i-Saraan<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Self-employed individuals without other employment and those without regular income like housewives*, baby-sitters, freelancers, online business owners, hawkers, farmers, pensionable employees.<\/li>\n\n\n\n<li>Malaysian citizen below 55 years old<\/li>\n<\/ul>\n\n\n\n<p>*<em>Housewife is entitled to only one incentive offered by EPF at any time. If she is already registered under the i-Suri incentive, then she can only apply for this i-Saraan retirement scheme if she cancels the i-Suri incentive.<\/em><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>How to Apply<\/strong><\/h2>\n\n\n\n<p>Obtain and complete the Form KWSP 16G(M) which can be found from EPF website and submit it to EPF Officer either over the counter or by mail.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>i-Saraan Benefits<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Minimum guaranteed return of 2.5% per annum<\/li>\n\n\n\n<li>EPF Dividend given until 100 years old<\/li>\n\n\n\n<li>EPF death benefit of RM2,500<\/li>\n\n\n\n<li>EPF tax exemption of up to RM4,000<\/li>\n\n\n\n<li>Government\u2019s matching contribution of 15% (up to maximum of RM250) per annum for 2018-2022<\/li>\n\n\n\n<li>Can contribute at anytime based on individual\u2019s financial capability with maximum amount of RM60,000 annually<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Can I Withdraw Money from EPF Account?<\/strong><\/h2>\n\n\n\n<p>There will be 2 EPF accounts for you once you become a member and start contributing.<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li>EPF Account 1 (70% of your contribution) &#8211; Can withdraw when you reach 55 years old<\/li>\n\n\n\n<li>EPF Account 2 (30% of your contribution) &#8211; Can withdraw before you reach 55 years old for purchase or construction of residential house provided a minimum of RM500 is left in this Account. All remaining amount can be withdrawn when you reach 55 years old<\/li>\n<\/ol>\n\n\n\n<p>With this EPF i-Saraan retirement fund scheme offered by our government to help the self-employed in retirement planning, if we compare it to bank\u2019s fixed deposit of 2-3% at current economic situation, EPF annual dividend payout rate of minimum 2.5% and the additional 15% extra matching contribution offered by our government definitely stands out as a better deal.<\/p>\n\n\n\n<p>For more information, please visit: <a href=\"https:\/\/www.kwsp.gov.my\/ms\/member\/contribution\/i-saraan\">https:\/\/www.kwsp.gov.my\/ms\/member\/contribution\/i-saraan<\/a><\/p>\n\n\n\n<p><a href=\"https:\/\/manage.wix.com\/dashboard\/45ee709e-bf4d-407c-8417-0ad5a6be0af0\/blog\/posts\/search\/.hash.epf?referralInfo=sidebar\">#EPF<\/a> <a href=\"https:\/\/manage.wix.com\/dashboard\/45ee709e-bf4d-407c-8417-0ad5a6be0af0\/blog\/posts\/search\/.hash.retirementplan?referralInfo=sidebar\">#retirementplan<\/a> <a href=\"https:\/\/manage.wix.com\/dashboard\/45ee709e-bf4d-407c-8417-0ad5a6be0af0\/blog\/posts\/search\/.hash.retirementsaving?referralInfo=sidebar\">#retirementsaving<\/a> <a href=\"https:\/\/manage.wix.com\/dashboard\/45ee709e-bf4d-407c-8417-0ad5a6be0af0\/blog\/posts\/search\/.hash.governmentbenefit?referralInfo=sidebar\">#governmentbenefit<\/a> <a href=\"https:\/\/manage.wix.com\/dashboard\/45ee709e-bf4d-407c-8417-0ad5a6be0af0\/blog\/posts\/search\/.hash.extramoney?referralInfo=sidebar\">#extramoney<\/a> <a href=\"https:\/\/manage.wix.com\/dashboard\/45ee709e-bf4d-407c-8417-0ad5a6be0af0\/blog\/posts\/search\/.hash.dividend?referralInfo=sidebar\">#dividend<\/a> <a href=\"https:\/\/manage.wix.com\/dashboard\/45ee709e-bf4d-407c-8417-0ad5a6be0af0\/blog\/posts\/search\/.hash.interestreturn?referralInfo=sidebar\">#interestreturn<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>We have heard a lot about contributing to Employees Provident Fund (EPF) &#8211; a compulsory retirement fund for those employed set up by our Malaysian government, whereby employers will deduct a percentage of 7%-11% from employees\u2019 salary while contributing additional part of 12%-19% to this retirement fund as a benefit to their employees. As the [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":3789,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":""},"categories":[59],"tags":[],"class_list":["post-3787","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog"],"_links":{"self":[{"href":"https:\/\/www.kiatassociates.com\/index.php\/wp-json\/wp\/v2\/posts\/3787","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.kiatassociates.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.kiatassociates.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.kiatassociates.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.kiatassociates.com\/index.php\/wp-json\/wp\/v2\/comments?post=3787"}],"version-history":[{"count":1,"href":"https:\/\/www.kiatassociates.com\/index.php\/wp-json\/wp\/v2\/posts\/3787\/revisions"}],"predecessor-version":[{"id":3790,"href":"https:\/\/www.kiatassociates.com\/index.php\/wp-json\/wp\/v2\/posts\/3787\/revisions\/3790"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.kiatassociates.com\/index.php\/wp-json\/wp\/v2\/media\/3789"}],"wp:attachment":[{"href":"https:\/\/www.kiatassociates.com\/index.php\/wp-json\/wp\/v2\/media?parent=3787"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.kiatassociates.com\/index.php\/wp-json\/wp\/v2\/categories?post=3787"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.kiatassociates.com\/index.php\/wp-json\/wp\/v2\/tags?post=3787"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}