EPF 2026 New Update: What Employers & Employees Need to Know

The Employees Provident Fund introduced a new policy framework that took effect on Jan 1, 2026. This rollout follows announcements made in the Budget speech last October and aims to boost retirement savings for all registered members.

The fund declared a 6.15% dividend rate for both Simpanan Konvensional and Simpanan Shariah for the 2025 financial year. Members can check updated balances using the i-Akaun app or the official member portal.

Employers and employees should review how the updates affect contributions, investment income, and payroll processes. The new framework seeks to align growth with market trends and strengthen overall member experience.

Whether you manage payroll or track your own retirement, understanding these changes helps secure long-term financial wellbeing and clearer planning for future years.

Key Takeaways

Policy changes began Jan 1: New framework improves retirement savings access for members.
Dividend rate set: 6.15% declared for both Simpanan Konvensional and Shariah.
Members can view balances via the i-Akaun app or member portal.
Employers must adjust payroll and contributions to match the updated rules.
The framework targets stable investment returns and better member experience.

Understanding the EPF Malaysia 2026 Policy Updates

members savings

The update sets a clear path for members to plan toward retirement. The Retirement Income Adequacy framework defines three tiers: Basic Savings (RM390,000), Adequate Savings (RM650,000), and Enhanced Savings (RM1.3 million).

Members get more flexibility for religious planning. The Tabung Haji withdrawal from Akaun Sejahtera rose from RM3,000 to RM10,000, and manual balance checks are no longer needed when applying.

New self-service options now exist. The refreshed branding adds i-Simpan for self contributions and i-Topup for voluntary top-ups above statutory contributions. These aim to boost members savings and support retirement planning.

The 6.15% dividend for 2025 was credited on the March date announced, so Simpanan Konvensional and Simpanan Shariah balances reflect that rate. Employers and the government view these moves as strengthening social protection infrastructure while balancing access and long-term protection of retirement income.

Roadmap: Clear targets for reaching basic savings.
Access: Higher Hajj withdrawal and simpler processing.
Options: New channels to increase contributions and investment growth.

New Support Schemes for Gig Workers and Housewives

New targeted schemes now help workers with irregular income and homemakers build steadier retirement savings.

i-Saraan Plus helps gig workers with automatic deductions and a government matching incentive up to RM600 per year, capped at RM6,000 for life. Participating platforms let drivers choose their own deduction rates, which makes planning flexible for irregular income.

i-Saraan Plus for Gig Economy Workers

This option boosts members’ long-term savings by pairing their contributions with direct matches. It encourages regular contributions even when work is seasonal or freelance.

Extending Eligibility for i-Suri

The i-Suri scheme now raises the eligibility age from 55 to 60, aligning with the national retirement age. The government will match 50% of annual contributions, up to RM300 per year and RM3,000 lifetime.

“These schemes narrow gaps in retirement income and expand social protection for those outside traditional payroll systems.”

Matching incentives increase total savings and strengthen members’ investment portfolios.
Flexible deductions let gig workers set contribution levels that suit on-demand work.
Higher eligibility gives housewives more time to grow retirement income.

Navigating the Retirement Income Adequacy Framework

Clear guidance now helps members understand how much they should aim to save and when they can safely use excess funds.

members savings

Understanding Savings Tiers

The framework sets concrete targets: Basic Savings at RM390,000, Adequate Savings at RM650,000, and Enhanced Savings at RM1.3 million. These tiers give members a roadmap for retirement planning and long-term growth.

Adjustments for High Balance Accounts

For members under age 55, excess withdrawal limits rise by RM100,000 each year, starting at RM1.1 million. This staged increase protects core retirement income while allowing gradual access to higher balances.

Updates to the Member Investment Scheme

The Member Investment Scheme now requires the Basic Savings threshold of RM390,000 before members can move funds into higher-risk investments. This ensures that investments do not erode essential retirement income.

Protects core funds: Keeps basic retirement needs secure while enabling investment income opportunities.
Clear eligibility: MIS alignment with Basic Savings promotes stable portfolio planning.
Gradual access: Phased withdrawal thresholds support long-term financial infrastructure and planning.

Conclusion

Updated rules now give members clearer paths to grow savings and protect core retirement income. The RIA framework, i-Saraan Plus and new tiers make planning more practical. The 6.15% dividend, credited on March 1, 2026, also updates member balances and the stated rate, so check the portal or app for the exact date.

Employers and members should review contribution choices and investment options to match personal goals. The employees provident fund is focused on social protection, flexible withdrawal rules, and stronger fund security. For account-specific information, visit the official site or a local branch.

FAQ

What are the key employer obligations under the 2026 update?

Employers must continue to remit monthly contributions on time, update payroll records to reflect any new contribution rates, and provide clear statements to employees. They should also ensure compliance with any expanded reporting for gig worker arrangements and maintain proof of payment to avoid penalties.

How do employees check their updated contribution rates and balances?

Members can view current rates and balances through the official member portal or mobile app. Regularly reviewing statements helps track contributions, investment returns, and any new tier adjustments that affect long-term savings and retirement planning.

Who qualifies for the i-Saraan Plus scheme for gig workers?

Self-employed individuals and platform-based gig workers can enroll if they meet income and documentation criteria. The scheme aims to expand social protection by allowing voluntary contributions with matching or top-up incentives to boost basic savings.

How does extending i-Suri affect housewives and homemakers?

Extending eligibility lets more non-working spouses join voluntary savings plans. Contributors can build retirement credit through smaller regular payments or periodic top-ups, improving coverage for those without formal employment histories.

What are the new savings tiers in the Retirement Income Adequacy Framework?

The framework now defines tiered targets based on income replacement goals and years to retirement. Each tier outlines suggested basic balances and recommended contribution levels to help members reach a sustainable retirement income.

How will adjustments for high-balance accounts work?

Accounts with high balances may face revised withdrawal rules or different investment guidance to protect long-term fund sustainability. These changes aim to balance individual needs with overall fund health and equitable outcomes for all members.

What updates were made to the Member Investment Scheme?

The scheme now offers additional portfolio options, clearer risk disclosures, and streamlined switching rules. Members gain better tools to align investments with retirement goals, including more ESG and infrastructure-linked choices.

Can members switch between conventional and Shariah-compliant savings?

Yes. Members may transfer balances between conventional and Shariah portfolios subject to administrative procedures and any applicable cooling-off periods. This supports personal preference and religious considerations in long-term planning.

Are there changes to partial or full withdrawal rules?

Withdrawal rules have been updated to reflect the new framework and support targeted needs like housing, healthcare, or education. Eligibility, caps, and tax implications vary by withdrawal type and member age, so check official guidance before applying.

How will the update affect retirement income predictability?

The reforms introduce clearer projection tools and recommended strategies to improve income predictability. By combining contribution guidance, tier targets, and diversified investments, members can better estimate post-retirement cash flow.

What support is available for members who need advice on retirement planning?

Members can access online calculators, educational webinars, and counseling services provided through the member portal. Financial literacy materials and one-on-one assistance help with contribution planning, investment choices, and retirement modeling.

Will contribution rates change for employers or employees this year?

Any rate changes are communicated through official channels. Employers should monitor formal announcements and update payroll processes accordingly. Employees should review pay slips to confirm correct deductions and employer remittances.

How do investment returns affect individual balances after these updates?

Investment performance continues to influence annual crediting rates. The update emphasizes diversified portfolios and infrastructure investments to aim for stable long-term returns. Members should note that past performance is not a guarantee of future results.

What protections exist for members if market volatility hits fund investments?

The fund uses risk management frameworks and a diversified asset mix to mitigate volatility. There are also reserve mechanisms and portfolio rebalancing policies designed to protect members’ basic savings and sustain the fund through market cycles.