EPF expands automatic registration for Malaysians at age 18

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EPF automatic registration at age 18

Highlights

EPF will implement automatic registration for Malaysians at age 18, expanding access to retirement savings following the Budget 2027 announcement.
The government is offering a 20% matching incentive for e-hailing and p-hailing drivers, capped at RM600 per year and RM6,000 over a lifetime until retirement age.
From January 2027, members under 55 can use Akaun Sejahtera savings to pay MediAsas, medical insurance and takaful premiums.

This article was translated from the original. Read the original version by our correspondent here.

Early registration and contribution details

As reported by The Edge Malaysia, citing an EPF statement on Friday, the automatic registration will be implemented following Prime Minister Datuk Seri Anwar Ibrahim's announcement during the presentation of Budget 2027. EPF said the measure “expands access to retirement savings”, compared with the existing system, which records registration only when the retirement fund receives a person's first contribution from an employer.

Under the current rules, employers may also register employees directly, or individuals may register themselves. Latest EPF data shows the fund had 18.5 million members as of the end of June, of whom 10.95 million were active members, meaning they had made at least one contribution in the past 12 months.

For employees under 60, the standard statutory contribution rate is 11% from employees and 13% from employers for monthly salaries of RM5,000 and below. The employer contribution rate is 12% for salaries above RM5,000.

Gig incentives and use of health savings

Anwar also announced several retirement fund-related initiatives covering withdrawals, medical insurance packages and incentives for e-hailing drivers and p-hailing workers. To encourage retirement savings among drivers and delivery workers, the government is offering a 20% matching incentive, with eligible members required to contribute RM3,000 annually to receive the maximum incentive of RM600, subject to a lifetime cap of RM6,000 until retirement age.

The i-Saraan Plus programme for e-hailing and p-hailing drivers will also continue, according to EPF. At the same time, members under 55 will be allowed to use their Akaun Sejahtera savings to pay MediAsas premiums, a medical insurance and takaful plan scheduled to be rolled out nationwide in January 2027.

Akaun Sejahtera receives 15% of new contributions for members under 55, while 75% is allocated to Akaun Persaraan and 10% to Akaun Fleksibel. EPF currently already allows members to purchase approved life and critical illness insurance or takaful through the i-Lindung facility.

Members who opt for Simpanan Shariah may also pay zakat directly from their dividends, similar to Permodalan Nasional Bhd and Lembaga Tabung Haji accounts. Anwar also highlighted the i-Emas facility, which allows eligible members aged 55 and 60 to receive monthly withdrawals while their remaining savings continue to earn dividends.

In our earlier report on the launch of the MediAsas plan in January 2027, we outlined the government's efforts to standardise and improve the transparency of private hospital charges to help contain treatment costs. We also highlighted that EPF members under 55 will be allowed to use their Akaun Sejahtera savings to pay premiums, alongside subsidised support for SME workers and the expansion of electronic medical records.

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