Making Voluntary EPF Contributions

Should I make voluntary EPF contributions? Does it matter if I am employed, self-employed, or looking to work overseas in the future?

Updated: Aug 17, 2017

What is a Voluntary EPF Contribution

1. EPF Voluntary Contribution

  1. Persons who are given the option to contribute voluntarily: Owners of a sole proprietorship, self-employed persons, business partners and retired workers
  2. Any person who is:
    • not an employer as defined in the EPF Act 1991; or
    • not an employee as defined in the EPF Act 1991; or
    • neither an employer nor an employee as per their definitions under the EPF Act 1991, and  where both agree to contribute

2. EPF Voluntary Excess

You are employed with your employee contributing to EPF, and you/your employee/both wish to contribute more than the current amount.


EPF Voluntary Contribution Benefits

For self-employed:

  • There may be government incentives to contribute to EPF (i.e. 10% government matching for up to RM1,200 contribution to SP1M).
  • You want to maximize the RM6,000 EPF/life insurance tax relief.
  • You may apply for loans (i.e. home loan) in the future and require historical records of monthly EPF payments for ease of loan application and approval in the future.

For employees:

  • Your employer may give higher employee benefits above the minimum 13% employer contribution up to a maximum of 19%.
  • You have excess funds every month that you would like to regularly save for retirement with historical returns higher than current FD rates.

Overall: Making contributions to EPF will reduce your available cashflow as your funds are tied in until you are age 55 in most cases, especially for other investment options with higher than EPF returns. However, the pros outlined above may outweigh the cons, depending on your scenario.


How to make a Voluntary Contribution

  1. If you are self-employed/retired: the monthly contribution is min RM50 to max RM5,000 through your EPF account or through EPF SP1M. You can change the contribution amount at any time without prior notice.
  2. If you are an employee, you or your employer can increase your EPF contribution by contacting EPF and submitting KWSP 17 (Maj) while the employee needs to complete Form KWSP 17A (AHL). This change is permanent until you submit a new contribution change instruction.

Payment Limit

  1. The minimum contribution payment amount is RM50 for every transaction; AND
  2. Maximum of RM60,000 yearly.



  • Q: How do I change my EPF contribution from employed to self-employed?
    A: You will need to go to the nearest EPF branch. You will need to fill up KWSP6(1) form downloadable from EPF’s website or available at EPF.
    Note: There is a separate form for SP1M account opening.
  • Q: How do EPF contributions affect my loans/borrowing ability?
    A: This is a tricky subject as different banks have different requirements for loans which may change over time. Banks are basically looking at stability of income to determine whether a loan is approved. If you are self-employed/retired, having historical EPF records with regular EPF deductions for the past 1 – 2 years helps. (Other relevant records include your tax payments, fixed deposits available, credit card/loan repayment history). Another option if you are self-employed/retired is to form a company and pay yourself a fixed income (i.e. RM5,000 monthly) with EPF deductions.

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