Akta Kumpulan Wang Simpanan Pekerja 1991 (Akta 452), Peraturan-Peraturan & Kaedah-Kaedah (Hingga 15.9.2023) [KWSP]

The Employees Provident Fund Act 1991, also known as Akta Kumpulan Wang Simpanan Pekerja 1991 (Akta 452), is a Malaysian legislation that provides for the establishment of a national savings scheme for employees, known as the Employees Provident Fund (EPF).

The EPF is a compulsory savings scheme for all employees in Malaysia, with contributions made by both the employee and employer. The scheme is intended to provide financial security for employees in their retirement years, as well as in the event of disability or death.

Under the EPF, employees are required to contribute a percentage of their salary each month, with a matching contribution from their employer. The percentage of contribution is determined by the employee's age, with younger employees required to contribute a higher percentage than older employees.

The EPF also provides for various withdrawal schemes, including withdrawals for education, housing, and medical expenses. However, the primary purpose of the scheme is to provide for retirement income, and as such, withdrawals for other purposes are subject to certain restrictions and conditions.

In addition to the contributions made by employees and employers, the EPF also earns income through its investments. The EPF has a diversified portfolio of investments, including equities, bonds, and real estate, with the aim of generating strong returns to support the scheme's long-term sustainability.

The EPF is administered by the Employees Provident Fund Board, which is responsible for managing the contributions, investments, and withdrawals under the scheme. The Board is also responsible for ensuring compliance with the EPF Act, and for enforcing penalties for non-compliance.

Overall, the EPF is a crucial component of Malaysia's social security system, providing financial security for employees in their retirement years, as well as in times of disability or death. The scheme has been successful in achieving its objectives, with strong returns on investment and a high level of participation among employees and employers alike.