INTRODUCTION TO

SIMPANAN SHARIAH
Simpanan Shariah was introduced by EPF on
8 August 2016 as an option for EPF members
to have their account managed and invested
according to Shariah principles.

KEY FEATURES OF SIMPANAN SHARIAH

All members, regardless of religion, race and nationality, may choose Simpanan Shariah;

Simpanan Shariah is managed and invested based on Akad Wakalah, and the EPF board has been
appointed and entrusted to act on behalf of members to oversee the management and investment of
their EPF savings in accordance with Shariah principles;

Simpanan Shariah is endorsed by the EPF’s Shariah Advisory Committee (SAC);

The dividend rates for Simpanan Shariah will be based on actual performance of Shariah compliant
investments made by the EPF; and

Members who have chosen Simpanan Shariah are not allowed to revoke their decision and revert to
Simpanan Konvensional after the effective date.

KEY DIFFERENCES BETWEEN SIMPANAN SHARIAH

AND SIMPANAN KONVENSIONAL

Simpanan Shariah Simpanan Konvensional

Registration EPF Counter Auto-Registration (through employers)

EPF Mobile team EPF Counter
Mail

Dividend Dividend rate is based on actual Dividend rate is based on actual

performance of Shariah-compliant performance of the conventional
investment with no guarantee of investment (non Shariah-compliant and
minimum dividend rate Shariah-compliant investments) subject
to minimum rate of 2.5%

Withdrawal Current withdrawal facilities remain Current withdrawal facilities remain

except for Members Investment
Scheme where members are only
allowed to invest in Shariah-compliant
unit trust funds endorsed by the EPF

Investment Investments are based on Investments are based on

Environmental, Social and Governance Environmental, Social and
(ESG) principles and Shariah principles. Governance (ESG) principles.
SIMPANAN SHARIAH REGISTRATION
1. Members can register Simpanan Shariah Account by:
i) EPF Counter
ii) EPF Mobile team

2. Documents to be carried out during registration – MyKad/Passport (Non-Malaysians)

3. Successful applicants will be notified at least seven (7) days before the application effective date via a
Notice and Short Messaging System (SMS)

4. Members who do not receive any notification on the effective date may be due to the following reasons:
i) Member is still on the waiting list due to insufficient fund allocation; and
ii) Member’s contact details in the EPF system have not been updated.

EFFECTIVE DATE OF SIMPANAN SHARIAH

Upon registration for Simpanan Shariah, members will receive a notification on the effective date of
their Simpanan Shariah account.

The effective date will be on 1st January of the year following the registration, subject to allocation of
annual Shariah fund on first come first serve basis and any other conditions as determined by the
Board.

Members who failed to secure the effective date, due to insufficient fund allocation or registration
after yearly closing date, will need to wait for the next annual Shariah fund allocation.

REVOCATION OF SIMPANAN SHARIAH

Members may revoke the registration of Simpanan Shariah before the effective date of their
Simpanan Shariah accounts.

Members are required to bring their MyKad / Passport (Non Malaysian) to process the revocation at
any EPF counter.

Revocation will not be allowed after the effective date.

AKAD FOR SIMPANAN SHARIAH

The Akad (Shariah contract) for Simpanan Shariah is based on the Wakalah contract, where the Board is
appointed and entrusted to act on members’ behalf to manage and invest all credits (savings) in members’
account in accordance with the Shariah principles, the provisions under the EPF Act 1991, Regulations and
EPF Rules and other resolutions from time to time.

Click for Akad Simpanan Shariah

 Appointed and entrusted to act on members behalf

EPF Members EPF Board

Manage and invest EPF
Members savings in
EPF Withdrawals accordance with the
Shariah principles

Annual dividend for Simpanan Shariah based on the actual

performance of EPF’s Shariah comliant investments

‘Members’ Simpanan Shariah Portfolio

Shariah Account’

FEATURES OF SIMPANAN SHARIAH CONTRACT

Akad for Simpanan Shariah is based on wakalah contract endorsed by the SAC.

The applied wakalah contract is categorized as wakalah mudhafah lil mustaqbal (agency contract
that comes into effect in the future) i.e. Simpanan Shariah Account will come into effect on the
effective date and not immediately upon Simpanan Shariah registration.

The Board will manage Shariah Portfolio comprises of EPF Shariah-compliant investment assets for
Simpanan Shariah.

The Board will declare an annual dividend for Simpanan Shariah based on the actual performance of
Shariah Portfolio allocated to Simpanan Shariah in proportion to its share in the portfolio i.e. realised
Shariah-compliant investment income, and non-investment income after netting off expenses.

EPF does not guarantee any minimum dividend rate for Simpanan Shariah as any guaranteed return
by EPF as the fund manager is tantamount to usury that is prohibited by the Shariah. Nonetheless,
both the Simpanan Shariah and Simpanan Konvensional share similar investment strategic targets to
ensure capital preservation and value enhancement of members’ savings.

SHARIAH-COMPLIANT INVESTMENT
In addition to ethical investment practices, which refrain from investing in sectors that manufacture
and promote alcohol, gambling, adult entertainment and military weapons, among others, all
investment assets will also undergo a Shariah screening process based on the Shariah criteria and
guidelines set by the SAC, that serve to eliminate non-shariah compliant elements such as riba
(interest/usury), gharar (uncertainty in contract), maysir (gambling) and other prohibited elements
such as non-halal goods and services.

To ensure end-to-end Shariah compliance, the SAC has set forth Shariah policies on compliance and
monitoring of Shariah-compliant investments, which will be updated from time to time.

As the total EPF’s Shariah investment asset (Shariah Portfolio) is greater than the savings amount of
Simpanan Shariah members, Simpanan Konvensional will also invest in the Shariah Portfolio.

Revenue generated from the Shariah Portfolio is allocated to Simpanan Shariah in proportion to its
share in the portfolio.
RECLASSIFICATION OF SHARIAH-COMPLIANT INVESTMENT
EPF investments such as listed and private equity, real estate and infrastructure are subject to periodic
Shariah screening to review the Shariah status of such investments.

For investments in listed equities, Shariah screening will be conducted based on the result of the
periodic review by the Shariah Advisory Council of the Securities Commission Malaysia (SAC SC) on
domestic equities and relevant Shariah index providers for global equities.

For investments in private equity, real estate and infrastructure, Shariah screening will be conducted
by EPF on annual basis based on the Shariah screening criteria and guidelines set by the SAC (EPF
Shariah Screening)

As a result of the Shariah screening, if any of the above investment assets were excluded from the SAC
SC’s list of Shariah-compliant securities or relevant Shariah indices or have failed the EPF Shariah
Screening as the case may be, such assets will be reclassified as Shariah non-compliant investments
and will be transferred from the Shariah Portfolio to Non-Shariah Portfolio.

Similarly, if any of the investment assets in Non-Shariah Portfolio has been reclassified as
Shariah-compliant assets, such assets will be transferred to the Shariah portfolio.

For Shariah mandate managed by external fund managers, any Shariah-compliant instruments
reclassified as Shariah non-compliant will be disposed according to the guidelines set by the SAC SC.

TREATMENT OF SHARIAH NON-COMPLIANT INCOME

Shariah non-compliance income were derived from excess gain due to reclassification of
Shariah-compliant equities into Shariah non-compliant equities, interest income from foreign
conventional accounts of Shariah-compliant investments and late payment charges.

Late payment charges and/or dividend are imposed on employers for late payment of contributions,
and other parties for late payment of any financial obligation due to and payable to EPF, to safeguard
the interest of EPF members. With regards to Simpanan Shariah, the SAC allows such charges to be
imposed as deterrent and penalty to defaulters either in the form of ta’widh (compensation) or
gharamah (penalty at the rate above the ta’widh rate). The ta'widh amount as endorsed by the SAC,
may be recognized as Shariah-compliant income, while any excess amount will be recorded as Shariah
non-compliant income (NCI).

SAC has resolved that the NCI can only be utilised for allowable expenses i.e. charitable activities such
as payments of death benefit, incapacitation benefit and invocation costs and any excess NCI may be
utilised for operating expenditure and indirect investment expenditure.
SHARIAH ADVISORY COMMITTEE (SAC)
The SAC is a committee established by the EPF Board under section 23A of the EPF Act 1991 who will be the
authority for the ascertainment of Shariah matters in ensuring that the Simpanan Shariah complies with
Shariah principles.

Prof. Dr. Mohamad Akram Laldin (Pengerusi)

Executive Director
International Shari’ah Research Academy for Islamic Finance (ISRA)

Prof. Madya Dr. Aznan Hasan (Timbalan Pengerusi)

Lecturer (Associate Professor)
Institute of Islamic Banking & Finance, International Islamic University Malaya (UIAM)

Dr. Zaharuddin Abdul Rahman

Founder Chief Executive Officer
Elzar Shariah Solutions & Advisory Sdn Bhd.

Prof. Dr. Engku Rabiah Adawiah Engku Ali

Professor
Institute of Islamic Banking & Finance, International Islamic University Malaya (UIAM)

Dr. Kamaruzaman Noordin

Senior Lecturer
Department of Shariah and Management, Academy of Islamic Studies, University of Malaya
ZAKAT ON EPF SAVINGS
In respect of Zakat on EPF savings, the SAC has resolved that:

Muslim members are liable to pay zakat on their EPF savings that are eligible to be withdrawn and
used without any restriction i.e. having complete ownership (Milkut Tam) at the rate of 2.5%, subject to
Nisab (minimum amount equivalent to the prevailing value of 85 grams of gold) as determined by the
relevant states’ Zakat authority.

The following types of withdrawals are subject to Zakat:

i) Age 50 Years Withdrawal; v) Pensionable Employees Withdrawal And Optional

ii) Age 55 Years Withdrawal; Retirement Withdrawal; and
iii) Age 60 Years Withdrawal; vi) Withdrawal Of Savings Of More Than RM1 Million.
iv) Leaving Country Withdrawal;

Other type of withdrawals are not subject to Zakat:

i) Withdrawals for basic necessities (Hajah Asliyyah) such as withdrawals related to home ownership
(i.e. withdrawal to purchase/build house, reduce/redeem housing loan and to pay housing loan
monthly instalment), education, health and incapacitation.

ii) Hajj Withdrawal that is intended to support the basic expenses for Muslim members to perform
Hajj pilgrimage.

iii) Investment under Members’ Investment Schemes (MIS) which is still under EPF’s control i.e.
members who have not reached age of 55 or have not made full withdrawal under the Leaving the
Country, Incapacitation, Pensionable Employees or Death Withdrawals.

Muslim members who intend to utilise their EPF savings to settle debts, Zakat will only be levied on the
remaining EPF savings that are eligible to be withdrawn subject to Nisab. Apart from settling debt,
Muslim members may also deduct their basic expenditure as well as their dependents based on Haddul
Kifayah (amount sufficed to meet basic needs) set by the relevant states’ Zakat authority before
computing zakat sum to be levied on their EPF savings.

DIVIDEND PURIFICATION
The EPF’s Shariah Advisory Committee (SAC) has decided that conversion to Simpanan Shariah is exempted
from dividend purification. The Muzakarah Khas (Conference) Fatwa Committee National Council of Islamic
Religious Affairs Malaysia held on 18 August 2015 had resolved that the EPF is not obliged to purify the
dividend on EPF savings for all members who choose Simpanan Shariah.

Link to: The decision of the Muzakarah Khas (Conference) Fatwa

Committee National Council of Islamic Religious Affairs Malaysia.

If members still want to perform dividend purification, members are advised to observe the following
guidelines1 :-
1. Members must ensure that the dividend purification will not cause harm that could detrimentally affect
their basic expenditure as well as their dependents based on the following conditions

i) For members who have reached age 50, their total EPF savings after deducting debts (if any)
must be more than the Minimum Savings:
a. West Malaysia: RM223,200;
b. Sabah/Labuan: RM280,800; dan
c. Sarawak: RM237,600.
1 Disclaimer: The purification guidelines are provided as guidance only. Please note that the EPF shall not be responsible or held liable for any costs or
losses due to amount shortage or surplus in relation to the dividend purification.
 ii) Members who have not reached age 50, their monthly gross household income must be more than
RM2,600.

iii) If the conditions above are not fulfilled, members are advised not to perform dividend purification.

2. The dividend purification will be performed at the rate of 50% of the total dividend. The total dividend
shall be determined as follows:
i) Member who has made full withdrawal: Total dividend credited into member’s account every year
up to the final dividend paid upon full withdrawal; or

ii) Member who has chosen Simpanan Shariah: Total dividend credited into member’s account every
year up to the last dividend received from Simpanan Konvensional.

3. The dividend purification can be performed by using any of members’ financial resources, including EPF
withdrawals namely the Age of 50 and 55 Years Withdrawal, Leaving Country Withdrawal, Pensionable
Employees Withdrawal and Optional Retirement Withdrawal, Withdrawal of Savings of More Than
RM1 Million and Incapacitation Withdrawal.

4. The purification amount shall be channeled towards charitable activities such as relief for the poor,
natural disaster, medical and healthcare expenses, education expenses or construction/development
of public amenities either:

i) Through Baitulmal of the Islamic Religious Council of respective states or association/ organisation
registered as charitable bodies; or

ii) Directly to those who are in need of financial aid, especially family members other than parents,
wife and children (obligatory dependents).

Link to: Example of Purification Amount Calculation.

THE PERCENTAGE OF PURIFICATION FROM THE PROFITS EARNED

FROM THE SIMPANAN KONVENSIONAL FOR MEMBERS WHO
HAVE NOT OPTED TO SWITCH TO SIMPANAN SHARIAH.
1. The percentage Simpanan Konvensional dividend of 2017 to be purify is 64% of the total dividend
amount credited into the account of members who have not switched to Simpanan Shariah or those
who have made the switch but has not come into effect in 2017.

Simpanan Shariah Simpanan Konvensional

Dividend
Rate 6.40% 6.90%
Source of
dividend
100% 36% 64%
from Shariah investment Shariah Non-Shariah
investment investment
Dividend Not applicable
Purification
(Muslim
64%
members) Total dividend amount credited into
member’s account

2. Example of calculation:
a) Total Simpanan Konvensional Dividend: RM10, 000
b) Total dividends to be purified : RM10, 000 x 64% = RM6, 400
3. The dividend purification can be performed by using any of members’ financial resources, to be
channeled towards charitable activities such as relief for the poor, natural disaster, medical and
healthcare expenses, education expenses or construction/development of public amenities either:

i) Through Baitulmal of the Islamic Religious Council of respective states or association/ organisation
registered as charitable bodies; or

ii) Directly to those who are in need of financial aid, especially family members other than parents,
wife and children (obligatory dependents

www.kwsp.gov.my
FREQUENTLY ASKED QUESTIONS
1. What is the Dividend 2017 rate for Simpanan Konvensional and Simpanan Shariah?
Dividend 2017 rate for Simpanan Konvensional is 6.90 per cent and 6.40 per cent for Simpanan
Shariah.

2. Can EPF members maintain both Simpanan Konvensional and Simpanan Shariah?
No, EPF members can only have one account, either Simpanan Konvensional or Simpanan Shariah.

3. How is the dividend rate for Simpanan Shariah derived?

The dividend for Simpanan Shariah is derived from realised Shariah-compliant investment and
non-investment income after netting off expenses. The realised net income is then divided by the
amount required to pay for every one (1) per cent dividend for Simpanan Shariah.

4. Why can’t Muslim members be registered to Simpanan Shariah by default?

From Shariah perspective, a contract (akad) in a transaction must be concluded by mutual agreement
to the terms and conditions by both contracting parties. For Simpanan Shariah, the Wakalah contract
is applied where EPF board has been appointed and entrusted to act on behalf of members to manage
and invest their EPF savings in accordance with Shariah principles and applicable laws.

5. If I choose Simpanan Shariah, will my annual statement be different?

No, members’ annual statement of account will remain the same. The annual statement will indicate
members’ account status and Simpanan Shariah effective date.

6. Can I access my Simpanan Shariah via i-Akaun?

Yes, members can access their Simpanan Shariah via i-Akaun.

7. Should I inform my employer if I choose Simpanan Shariah?

No, members are not required to inform their employers if they choose Simpanan Shariah.

8. Are employers required to make separate contribution payments for employees who choose
Simpanan Shariah?
No, employers are not required to make separate contribution payments on behalf of their employees
who have chosen Simpanan Shariah.

9. Will there be two different Form A for employers to fill in? Is there any particular form for employers
to complete?
No, employers are only required to complete Form A as per existing process and there will be no
additional forms for employers to complete or changes to be made.

10. Are there any new rules and regulations pertaining to contributions that employers need to comply
with if their employees wish to choose Simpanan Shariah?
No, all employers are subject to the existing rules and regulations on contributions.
SOALAN LAZIM
11. Will there be any additional costs incurred by employers if their employees wish to choose
Simpanan Shariah?
No, there will be no additional costs incurred by employers if their employees wish to choose Simpanan
Shariah.

12. Am I allowed to utilise the eligible withdrawal amount from my Simpanan Shariah to fund for
conventional housing loans or is it limited to Islamic housing financing?
Yes, members can use their withdrawal amount to fund conventional housing loans and Islamic housing
financing, subject to the housing withdrawal terms and condition.

13. Are unit trust funds managed by Amanah Saham Nasional Berhad (ASNB), including Amanah
Saham Bumiputera 2 (ASB2), Shariah compliant? Are members with Simpanan Shariah allowed to
invest in unit trust funds managed by ASNB?
The 80th Muzakarah (Conference) of the Fatwa Committee National Council of Islamic Religious Affairs
Malaysia has resolved that investment in Amanah Saham Nasional scheme (ASN) and Amanah Saham
Bumiputera scheme (ASB), including their dividend and bonus, is permissible. Simpanan Shariah
members may refer to the respective Fund Management Institutions and their appointed Shariah
adviser for any clarification on the Shariah compliance of the listed Shariah compliant funds. The
Shariah Advisory Committee of EPF shall not provide any endorsement on the listed Shariah compliant
funds.

14. How does the EPF ensure that Simpanan Shariah remains Shariah compliant?
The EPF has established a comprehensive Shariah governance framework to ensure the operational
and investment activities under the Simpanan Shariah adhere to the Shariah investment parameters
endorsed by the EPF’s Shariah Advisory Committee (SAC). As part of the EPF’s commitment to corporate
governance, the SAC will prepare and issue a report on Shariah compliance of Simpanan Shariah every
financial year.

15. Are there any changes to the nomination policy for Simpanan Shariah?
Nomination policy for Simpanan Shariah members remains the same

For more information please visit link to

(http://www.kwsp.gov.my/portal/ms/web/kwsp/members/member-responsibility/registration/nomination

16. If I have made conventional investment through my EPF Account 1 prior to switching to Simpanan
Shariah, do I have to convert, redeem or sell the investment?
EPF Rules (Simpanan Shariah Account) 2016 have set that investments made by EPF members before
the effective date of Simpanan Shariah are not required to be converted to a Shariah-compliant
investment, or liquidated or redeemed. However, in order to be in accordance with the Shariah
principles, the EPF Shariah Advisory Committee (SAC) advises Muslim members to convert their
conventional investment to a Shariah-compliant investment or redeem or liquidate their conventional
investment. As Muslims, they are obligated to ensure all affairs, including matters relating to property
and finance, comply with Shariah. They are also advised to purify the gains received from any
conventional investments.
 EMPLOYEESPROVIDENT FUND
AKAD FOR SIMPANAN SHARIAH Reference No: 26000000000003
Date : DD/MM/YYYY

(A) MEMBER’S INFORMATION

Name : ALI BIN ABU

Member’s No. : 20855913
Identification Card No. : 841104075295
Police/Army/Passport/Other Identification Document No. : -
E-mail Address : aliabu@gmail.com
Mobile No. : 017-7485368

(B) AKAD FOR SIMPANAN SHARIAH

I hereby make the “election” for all amount standing to the credit of my account with Employees Provident Fund (“EPF”) to be managed according
to Shariah as provided under Section 43A of the EPF Act 1991.

I agree to appoint the EPF Board as the “agent” and “trustee” to manage and invest all amount standing to the credit of my EPF account according
to Shariah based on the provisions under the EPF Act 1991, Regulations, Rules and any other related requirements in force from time to time.

I also agree that:

1. This election shall take effect on a date to be determined (“effective date”) based on the conditions as prescribed by the EPF Board.

2. This election may only be revoked before the effective date and no revocation is allowed after the effective date.

3. The annual dividend rate declared by the EPF Board is based on the actual performance of Shariah compliant investments.

4. The EPF Board may appoint any third party to manage the investment of all or part of the amount standing to the credit of my EPF account.

5. Transfer of funds under the EPF members Investment Scheme managed by the fund management or any other institutions shall only be
invested in Shariah compliant products as listed by the EPF Board.

6. Dividend for late payment of contributions, account adjustments, refund of contributions and reversal of contributions payment to be credited
into my EPF account shall be based on the status of my account as determined by the EPF Board.

7. This Akad shall be terminated and ceased to be effective in any of the following events:-

(a) Full withdrawal which has been approved by the EPF Board under the following withdrawal schemes:

(i) Leaving country; or

(ii) Death;

(b) All amount standing to the credit of my EPF account are transferred to the Registrar of Unclaimed Money.

8. Any decision by the EPF Board in relation to the management of credit standing to my EPF account is final and conclusive.

9. The EPF Board reserves the rights to make any additions, amendments or variations to the terms and conditions of this Akad based on the
provisions of EPF Act 1991.

***In the event of any discrepancy/inconsistency/conflict between

the provisions of Akad in the English and Bahasa Melayu version, the
provisions in the Bahasa Melayu version prevail.
(C) CONFIRMATION AND CONSENT

LEFT THUMB IMPRESSION RIGHT THUMB IMPRESSION

By affixing my thumb impressions, I confirm that: (If Necessary)

(a) all particulars in Part (A) are true and correct; and

(b) I have read, understand and agreed with the terms of this Akad.

Please contact 03 – 8922 6000 for any inquiries regarding this akad.
 SIGHAH
KEPUTUSAN MUZAKARAH KHAS
JAWATANKUASA FATWA
MAJLIS KEBANGSAAN BAGI HAL EHWAL UGAMA ISLAM
MALAYSIA
Tarikh : 18 Ogos 2015
Masa : 9.30 pagi
Tempat : Dewan Syura
Aras 9, JAKIM

1. Kertas JKF Khas Bil. 1/2/2015

Penyucian Dividen Simpanan Ahli KWSP Sedia Ada Sebelum Bertukar Ke Akaun KWSP
Yang Diuruskan Mengikut Prinsip Syariah (KWSP-Islamik)

1.1 Setelah meneliti fakta-fakta, hujah-hujah dan pandangan yang dikemukakan

Muzakarah mendapati bahawa:

i. Selaku pemegang amanah ke atas simpanan ahli KWSP, keuntungan yang

diperolehi oleh KWSP adalah berbentuk Takassub dan bukan secara
Ghasab. Dividen yang diterima oleh ahli KWSP diperolehi melalui transaksi
pelaburan yang dilakukan mengikut lunas undang-undang dan berdasarkan
kontrak yang dipersetujui bersama.

ii. KWSP merupakan pemegang amanah yang diberi mandat untuk menguruskan
simpanan ahli-ahli di bawah Akta KWSP 1991, di mana majikan diwajibkan
untuk mencarum dengan KWSP bagi pihak ahli dan setakat ini tiada sebarang
pilihan diberikan kepada ahli dan mereka tiada hak tasarruf dalam urusan
simpanan mereka sejak dari awal mencarum dalam KWSP. Simpanan tersebut
akan menjadi hak dan milik ahli KWSP setelah mencapai umur yang
ditetapkan

iii. Berdasarkan amalan semasa perbankan dan kewangan Islam di Malaysia, tiada
sebarang ketetapan yang pernah dikeluarkan oleh Majlis Penasihat Syariah
Bank Negara Malaysia atau Majlis Penasihat Syariah Suruhanjaya Sekuriti
Malaysia yang mewajibkan pelanggan perbankan Islam untuk menyucikan
terlebih dahulu sebarang pendapatan tidak patuh syariah yang diterima
sama ada daripada aktiviti perbankan konvensional atau dari sumber-sumber
lain sebelum boleh mendeposit atau melabur ke dalam produk patuh
syariah yang ditawarkan oleh institusi perbankan dan kewangan Islam.

iv. Majlis Penasihat Syariah Bank Negara Malaysia juga telah mengeluarkan
resolusi membenarkan segala dividen yang diterima daripada produk
konvensional dilaburkan semula ke dalam produk patuh syariah.

1.2 Sehubungan itu, berdasarkan hujah-hujah yang dikemukakan dan bagi menjaga
kepentingan dan maslahah ahli KWSP yang beragama Islam, Muzakarah bersetuju
memutuskan bahawa KWSP tidak diwajibkan untuk melakukan penyucian
terhadap dividen simpanan semua ahli KWSP yang bersetuju untuk bertukar ke
akaun KWSP-Islamik.
Simpanan Shariah

PURIFICATION AMOUNT CALCULATION

(For members who choose to perform purification)
Disclaimer: The purification guidelines are provided as guidance only. Please note that the EPF shall not be responsible or held liable for any costs or losses
due to amount shortage or surplus in relation to the dividend purification.

Contoh :

Individual 1 Individual
Individu 22 Individual
Individu 33
50-years-old member residing 55-years-old member residing A 30-years-old member
in Kuala Lumpur in Sarawak and made full withdrawal
Age 50 withrawal: RM100,000 Withdrawal amount: RM250,000 Monthly gross household income: RM3,000
Account balance: RM200,000 Debts: RM10,000 Total dividend up to the last dividend of
Simpanan Konvesional (2016): RM10,000
Total dividend up to the last dividend of Total dividend up to full withdrawal: RM50,000
Simpanan Konvesional (2016): RM75,000

STEP INDIVIDUAL 1 INDIVIDUAL 2 INDIVIDUAL 3

1 MEMBER WHO HAS REACHED AGE 50

A Determine total EPF’s savings (Aggregate of RM300,000 RM250,000
withdrawal amount1 and current balance of EPF
account
B Determine total debts paid/to be paid using EPF’s - RM10,000
savings (if any)

C Remaining EPF’s savings (proceed to Step 2) [A-B] RM300,000 RM240,000

MEMBER WHO HAS NOT REACHED AGE 50

D Determine monthly gross household income RM3,000
If the monthly gross household income is MORE THAN More Than
RM2,600, proceed to Step 3 RM2,600
If the monthly gross housegold is LESS THAN RM2,600,
member is advised not to perform dividend purification.

2 E Determine Minimum Savings2 according to the

region where member is residing
RM223,200 RM237,600

If the remaining EPF’s savings [C] is MORE THAN the More Than More Than
Minimum Savings [E], proceed to Step 3 Minimum Minimum
If the remaining EPF’s Savings [C] is LESS THAN the Savings Savings
Minimum Savings [E], member is advised not to perform
dividend purification.

3 F Total dividend RM75,000 RM50,000 RM10,000

4 G Determine purification amount (50% of total dividend) RM37,500 RM25,000 RM5,000

5 H Determine the remaining EPF’s Savings after deduction of

purification amount
RM262,500 RM215,000

If the remaining EPF’s savings after deduction of purification RM 37,500 -

amount is EQUAL TO/MORE THAN the Minimum Savings [E],
the purification amount is as per Step 4
If the remaining EPF’s savings after deduction of purification - RM 2,400
amount is LESS THAN the Minimum Savings [E], member is
advised to perform purification on the excess amount which
is the difference between the remaining EPF’s Savings [C] and
minimum Savings [E]3

1. Withdrawal amount refers to Age of 50 and 55 Years Withdrawal, Leaving Country Withdrawal, Pensionable Employess Withdrawal and Optional Retirement Withdrawal, Withdrawal
of Savings of More Than RM1 Million and incapatitation Withdrawal made after member has attained reached age of 50.
2. Minimum Savings : i) West Malaysia: RM223,200, (ii)Sabah/Labuan: RM280,800 dan (iii) Sarawak: RM237,600
3. Members are advised to retain at least the Minimum Savings so that the dividend purification will not cause harm that could detrimentally affect their basic expenditure as well as
their dependents.

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