The EPF is a social security institutions established under the Laws of Malaysia, Employees Provident Fund Act 1991 (Act 452) which provides retirement benefits to its members through management of their savings in an efficient and reliable. EPF also provide an efficient and easy to ensure they meet their legal responsibility and moral obligation to contribute to the EPF for their employees. Until June 2012, the Fund had a total of 13:35 million members. Number of active members and is still contributing a total of 6.33 million. Number of active employer also is of 496.939 (KWSP, 2012).
Contributions are monies credited to individual accounts in the EPF. The amount consists of employee contributions and employer contributions and is calculated based on the employee's monthly salary. The current contribution rate is according to the wage / salary received. For employees who receive wages / salary of RM5, 000 and below 11% of employee contributions deducted from their monthly salary, while employers' share of 13%. For employees who receive wages / salary of RM5, 000 per employee contribution remains 11% while 12% is the contribution by the employer. Workers' contributions are invested through a number of approved financial instruments to generate income. These include Malaysian Government Securities, Money Market Instruments, Bonds & Loans, Equity and Real Estate (KWSP, 2012).
EPF ensure your savings safe and get a reasonable dividend. Fund the dividend of 2.5 per cent per