EPF (KWSP)

KWSP..Well, most of us know what it is. But what should i know about this scheme?

It is compulsory for those working in Malaysia. The employee will contribute 11% of basic salary, meanwhile another 12% come from the employer. In total, the employee will have 23% of his basic pay in the account.

Since this is for retirement purposes, the dividend is quite low compared to other investment vehicle. This is well understood since the fund is intended for saving, not for investing.

Since 1st January 2007, there are two accounts for each KWSP member.
Account 1 - consists 70% of monthly contribution
Account 2 - consists 30% of monthly contribution

Account 1 is mainly for retirement purposes. No withdrawal before 55 years old. Account 2 can be used for buying house, children education and can be withdrawn at 50 years old. The details can be found at KWSP website.

KWSP Dividend 1952 -2005

YEAR = DIVIDEND PAID
1952 - 1959 =2.50%
1960 - 1962 =4.00%
1963 =5.00%
1964 =5.25%
1965 - 1967 =5.50%
1968 - 1970 =5.75%
1971 =5.80%
1972 - 1973 =5.85%
1974 - 1975 =6.60%
1976 - 1978 =7.00%
1979 =7.25%
1980 - 1982 =8.00%
1983 - 1986 =8.50%
1987 - 1994 =8.00%
1995 =7.50%
1996 =7.70%
1997 - 1998 =6.70%
1999 =6.84%
2000 =6.00%
2001 =5.00%
2002 =4.25%
2003 =4.50%
2004 =4.75%
2005 =5.00%