Cover image via Aswadi Alias/New Straits Times
Follow us on Instagram, TikTok, and WhatsApp for the latest stories and breaking news.
The Employees Provident Fund (EPF) has introduced policy and product enhancements to help Malaysians save more effectively, support gig workers and housewives, and clarify retirement savings targets
The changes, which take effect from 1 January 2026, include a new i-Saraan Plus scheme for gig workers and the rollout of the Retirement Income Adequacy (RIA) framework.
In a statement on 31 December 2025, the EPF said the initiatives aim to strengthen retirement savings, expand social protection, and improve the overall member experience.
New support for gig workers and housewives
One of the key changes is the introduction of i-Saraan Plus, a voluntary contribution facility tailored for e-hailing and p-hailing drivers.
Under the scheme, eligible drivers will receive a higher government matching incentive of up to RM600 per year, compared to RM500 previously, with a lifetime cap of RM6,000. Participating platforms will facilitate automatic contribution deductions, with contribution rates determined by the drivers themselves.
The new scheme builds on the existing i-Saraan programme, which remains in place for other self-employed individuals.
Meanwhile, the i-Suri scheme for housewives has also been expanded. The eligibility age has been increased from 55 to 60, in line with Malaysia's minimum retirement age.
The government will continue to match 50% of annual contributions, capped at RM300 per year and RM3,000 over a lifetime.
Higher Hajj withdrawal limit and simpler process
To better support members performing the hajj, the EPF has increased the hajj withdrawal limit from Akaun Sejahtera to RM10,000, up from RM3,000 previously.
The application process has also been simplified, with members no longer required to verify their Tabung Haji savings balance when applying for a withdrawal.
New Retirement Savings Benchmarks under the RIA framework
The Retirement Income Adequacy (RIA) framework has formally taken effect on 1 January, introducing three savings tiers to guide members' retirement planning:
- Basic Savings: RM390,000
- Adequate Savings: RM650,000
- Enhanced Savings: RM1.3 million
The Basic Savings threshold will be phased in gradually, starting at RM290,000 in 2026, rising to RM340,000 in 2027, and reaching RM390,000 in 2028.
Meanwhile, Adequate Savings aims to provide a "reasonable" standard of living, and Enhanced Savings targets a higher quality of life and greater financial independence.
According to the EPF, the framework shifts the focus from simply accumulating savings to ensuring members have enough income to meet retirement needs.
Tighter rules for RM1 million-plus accounts
In line with the new Enhanced Savings benchmark, the EPF will also revise withdrawal rules for members with high balances.
For members below age 55, the minimum savings threshold required before excess withdrawals can be made will be raised in stages. To ensure a smooth transition, the withdrawal floor for savings exceeding RM1 million will rise by RM100,000 annually.
- 2026: Threshold is RM1.1 million
- 2027: Threshold is RM1.2 million
- 2028: Threshold is RM1.3 million
This means members below age 55 can only withdraw amounts that exceed these thresholds during the respective years.
Investment rules aligned with Basic Savings
The Members Investment Scheme (MIS) will also be aligned with the Basic Savings tier under the RIA framework.
The minimum savings required to invest EPF funds into external unit trust investments will be revised in stages, ensuring that members' basic retirement needs are protected before any excess savings are used for investments.
"Overall, these adjustments operationalise the RIA framework announced in 2024, reflecting EPF's commitment to balancing flexible access with the long-term protection of members' savings, in line with current cost of living," the EPF said.
Mandatory contributions for non-Malaysians
Separately, EPF confirmed that all non-Malaysian employees, except domestic workers, are now required to contribute 2% of their wages, with employers also contributing 2%.
Non-citizen members will have access to the same EPF account structure and may withdraw their savings upon permanently leaving Malaysia or upon reaching retirement age. Partial withdrawal facilities for these members will open in April 2026.
Rebranding of voluntary contribution products
The EPF has also refreshed the branding of its voluntary contribution options:
- i-Simpan: for self-contributions
- i-Topup: for voluntary excess contributions above the statutory rate
"These initiatives include measures announced in the government's Budget 2026 on 10 October 2025, strengthening the EPF's commitment to responding to members' evolving needs while supporting long-term financial resilience, wellbeing and a more secure and meaningful retirement," the fund added.
