Are You Your Own Boss? You Can Now Be An EPF Member And Enjoy Its Benefits. Here’s How

By JUICE Malaysia  •  29 Jul 2019 in Features

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This Feature is sponsored by EPF.

Did you know that more than 60% of Malaysians do not have enough money saved for retirement?

According to EPF, Malaysians should have at least RM240,000 as basic savings by the time they reach 55 years old.

Retirement may seem far away but it’s important to start saving now. In fact, all it takes is putting a small portion of your earnings aside each month to enjoy a comfortable life in your golden years.

Most Malaysians think that EPF savings are only reserved for people who are working full-time. However, this isn’t the case!

If you’re self-employed, a housewife, or a freelancer, you can also register for EPF and receive its benefits

The Voluntary Contribution with Retirement Incentive (i-Saraan), allows people who are self-employed and/or do not earn a regular income to make voluntary contributions towards your retirement.

The great thing is, you also receive additional contribution from the government.

As a member under this incentive, you will receive a 15% government contribution on top of your own contributions. This amount is capped at a maximum of RM250 per year.

Not sure if you’re eligible? Have a look:

While formal sector workers will automatically receive EPF benefits, those in the informal and outside the labour force will not. But that doesn’t mean you can’t!

Examples of jobs in the informal sector include self-employed individuals, freelancers, musicians, artists, hawkers, vendors, and so forth. As long as you’re earning an income (and it doesn’t have to be regular!) you’re eligible to sign up as an EPF member. In fact, this scheme is even available for housewives.

Important Reminder: Housewives are only allowed to opt for one incentive at a time. If you have registered for i-Suri earlier, you would need to cancel it before reapplying for i-Saraan.

The requirements for application are also easy. To register as an EPF member and be eligible for i-Saraan, you must be the following:

• A Malaysian citizen
• Below 55 years of age
• Self-employed

There is no minimum amount so you don’t feel burdened by having to make mandatory contributions every month

Your contribution is flexible, meaning you get to choose just how much you want to put in your account, up to RM60,000 per year.

There are so many benefits to i-Saraan:

1. It’s a great way to save for your retirement so you can live comfortably once you decide to stop working.
2. You can contribute according to your own time and within your own financial ability.
3. You earn annual EPF dividends on your retirement savings, which have been around 6%* (that’s higher than other savings accounts!)
4. Receive income tax exemption of up to RM4,000.
5. Enjoy additional government contribution of 15% on your contributed amount. Subject to a maximum of RM250 annually for members below age 55.
6. Includes a death benefit of RM2,500.

Check out the full list of benefits, here.

*Subject to the investment performance for the year.

Enjoy the benefits of EPF without having a full-time job! Find out how to register your account now, by clicking here.

For more features, click here.