Epf Announces Policy And Product Enhancements Effective January 2026

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In a statement, EPF said these initiatives include measures under Budget 2026 announced on October 10, and reflect EPF’s continued commitment to meeting members’ evolving needs while supporting long-term financial resilience and wellbeing. — Photo by Choo Choy MayKUALA LUMPUR, Dec 31 — The Employees Provident Fund (EPF) has announced a series of policy and product enhancements taking effect from January 1, 2026, to strengthen retirement adequacy, expand social protection coverage and enhance the overall member experience.
In a statement, EPF said these initiatives include measures under Budget 2026 announced on October 10, and reflect EPF’s continued commitment to meeting members’ evolving needs while supporting long-term financial resilience and wellbeing.
Among the key initiatives is the increased haj withdrawal limit from RM3,000 to RM10,000 from Akaun Sejahtera to assist members who have received offers to perform the fifth pillar of Islam.
"The requirement to verify balances in members’ Tabung Haji savings accounts to determine the eligible withdrawal amount will be removed, thereby simplifying the application process and enabling members to plan their hajj more effectively,” the statement said.
In addition, EPF is introducing i-Saraan Plus, a voluntary contribution facility specifically for e-hailing and p-hailing drivers, with a higher government matching incentive of up to RM600 annually, subject to a lifetime cap of RM6,000.
EPF said eligible e-hailing and p-hailing drivers will be registered as EPF members through participating platform providers, which will also facilitate contribution deductions at rates determined by the drivers.
At the same time, the eligibility age for i-Suri will be extended from 55 to 60, in line with the national minimum retirement age, while the government’s matching incentive will be continued at 50 per cent of annual contributions, subject to a cap of RM300 per year and RM3,000 over a lifetime.
EPF also announced that the Retirement Income Adequacy (RIA) Framework will come into effect on Jan 1, 2026, with three savings tiers, which are Basic Savings (RM390,000), Adequate Savings (RM650,000), and Enhanced Savings (RM1.3 million), as guidance for retirement planning.
In line with the Enhanced Savings level, EPF will enhance its withdrawal policy for savings exceeding RM1 million, allowing members below age 55 to have flexibility to manage excess funds after meeting retirement needs.
The increase of the excess savings limit that can be withdrawn will be implemented gradually at RM100,000 every year over three years, starting from RM1.1 million in 2026.
Concurrently, the eligibility threshold for the Members Investment Scheme (MIS) will be aligned with the Basic Savings level. The minimum savings quantum for MIS eligibility will be revised in stages to ensure that excess funds used for investment do not affect members’ basic retirement needs.
Meanwhile, to encourage voluntary savings, EPF is also introducing i-Simpan for self-contribution and i-Topup for voluntary excess contributions (amounts exceeding the statutory rate) to complement existing contribution facilities such as i-Saraan, i-Sayang and i-Suri.
Further details on these initiatives are available in the FAQs on the EPF website at www.kwsp.gov.my. — Bernama

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