EPF automatic registration at 18, what changes
Budget 2027: every citizen becomes an EPF member automatically at 18. Registration is not savings. Here is what changes and what doesn't.
Under Budget 2027, every Malaysian citizen will be registered automatically as a member of the Employees Provident Fund (EPF, or KWSP) on turning 18. Prime Minister Datuk Seri Anwar Ibrahim announced the move on 9 October. It aims to get people saving for retirement earlier and to strengthen social protection.
What changes with automatic registration
| Now | After this move | |
|---|---|---|
| When you become a member | When the EPF receives the first contribution from an employer, or if you register yourself | Automatically at 18 |
| How to register | At an EPF counter or through the i-Akaun app | No action needed |
EPF chief executive officer Ahmad Zulqarnain Onn backed the move, saying it widens access to retirement savings.
What doesn't change: registration is not savings
Registration is not savings. Becoming an EPF member does not put any money into your account. Savings still come from:
- employer and employee contributions once you start working, or
- voluntary contributions you make yourself.
Reports on the budget tabling did not mention any starting contribution or incentive for new members aged 18.
Why EPF registration at 18 matters
Many young people start out working for themselves, as delivery riders, content creators or online sellers, with no employer paying contributions. With an account already in place from 18, it is easier to start saving on your own earlier.
For e-hailing and p-hailing drivers, the EPF said its i-Saraan Plus programme will continue. The government gives a 20 per cent matching incentive, capped at RM600 a year and RM6,000 over a lifetime, up to the minimum retirement age.
What we don't know yet
- When automatic registration starts.
- Whether people already over 18 who are not yet members will also be registered.
- How members who are registered automatically will activate their i-Akaun.
Frequently asked questions
Do I need to register with the EPF myself at 18?
No. Under this move, every citizen is registered automatically on turning 18.
Will money go into my EPF account once I'm registered?
No. Registration is not savings. Savings come from employer and employee contributions, or your own voluntary contributions. No starting contribution or incentive was mentioned for new members.
When does EPF automatic registration start?
The start date has not been announced.
I'm over 18 but not an EPF member yet. Will I be registered too?
That has not been announced. In the meantime, you can still register yourself at an EPF counter or through the i-Akaun app.
What is i-Saraan Plus?
An EPF programme for e-hailing and p-hailing drivers. The government gives a 20 per cent matching incentive, capped at RM600 a year and RM6,000 over a lifetime, up to the minimum retirement age.
Read also
- Budget 2027, what changes for your wallet
- Tax relief 2027, the RM12,000 limit and the list of new claims
- BAP 2027 rises to RM200, Form Six allowance set at RM2,500
- When BKK 2027 is paid, RM1,500 for civil servants and RM750 for pensioners
Sources
Pasukan editorial odyc
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