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The Employees Provident Fund noted that from 1 January 2025, the increase in matching incentive for i-Saaran is expected to benefit over 330,000 existing and new i-Saraan participants.
Malaysia's Employees Provident Fund (EPF) has endorsed Budget 2025, which was announced by Prime Minister Anwar Ibrahim on 18 October 2024.
More incentives for i-Saraan and broader i-Suri coverage
In line with the Ekonomi MADANI framework's people-centered economy, the EPF welcomes the Government’s approval to enhance the i-Saraan programme by increasing the matching incentive from 15% to 20%, though subject to a maximum of RM500 per year and a lifetime limit of RM5,000 per individual.
From 1 January 2025, this enhancement is expected to benefit over 330,000 existing and new i-Saraan participants. As shared by EPF, i-Saraan recorded total contributions of RM1.61bn from 330,196 members in the first half of 2024 — up 103% from RM789.3mn, and a 56% rise in the number of members from 211,361 in the same period of 2023.
At the same time, the Government’s matching incentive for the i-Suri programme of 50% of the total annual contribution will be extended for the year 2025. To note, the incentive is subject to a maximum matching limit of RM300 per year and RM3,000 for a lifetime, or until reaching the age of 55, whichever comes earlier.
EPF Chief Executive Officer Encik Ahmad Zulqarnain Onn commented: “The enhancement to i- Saraan and the continuation of the i-Suri programme underscores the Government’s strong commitment to bolstering the retirement income security of Malaysians, ensuring that the long- term welfare of all Malaysians is safeguarded.
“By addressing the needs of various segments of society, including youth, working adults, women, and senior citizens, the Government is laying the foundation for a more equitable and resilient future. The EPF fully supports this approach as it aligns with its purpose to build a better retirement future for Malaysians."
Intergenerational transfer mechanism
It was also announced in Budget 2025 that the EPF will review its scheme to allow for inter- generational transfer of savings by members to their family members. This enhancement will provide members with additional flexibility in planning for their retirement and the financial wellbeing of their families.
Extending EPF mandatory coverage to non-Malaysian workers
EPF has also agreed that the expansion of EPF mandatory coverage to non-Malaysian workers fully aligns with EPF’s broader effort to ensure that workers of all nationalities have access to social protection.
Ahmad Zulqarnain also asserted that the initiative will promote greater fairness in the labour market by ensuring social protection for all workers, regardless of nationality, in line with international standards.
At present, non-Malaysian workers can voluntarily opt to contribute to the EPF. With the new policy, over two million non-Malaysian workers in Malaysia are expected to benefit from better protection.
The EPF will provide further updates on the details of contribution rates, key target groups, and policy implementation mechanism in due course.
READ MORE: #Belanjawan2025: Key takeaways for HR & business leaders from Malaysia Budget 2025
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