In line with Malaysia’s commitment to fostering inclusive growth and long-term financial security, Budget 2026 introduces several enhancements to the Employees Provident Fund (EPF), aiming to provide greater support for individuals, especially those in the informal and self-employed sectors.
1. Introduction of i-Saraan Plus
Recognizing the growing gig economy, the government has introduced the i-Saraan Plus scheme. This enhanced voluntary contribution program is tailored for gig workers, e-hailing drivers, delivery riders, and other self-employed Malaysians. Under this scheme, contributors will receive matching government contributions of up to RM600 per year, capped at RM6,000 over a lifetime. This initiative builds upon the existing i-Saraan program, which offers matching contributions of up to RM500 annually or RM5,000 over a lifetime for informal sector workers.
2. Extension of i-Suri Program
The i-Suri program, designed to support housewives and homemakers, has been extended to individuals up to the age of 60 (aligned with the national minimum retirement age). The government will match 50% of the total annual contribution, subject to a maximum of RM300 per year and RM3,000 over a lifetime. This extension ensures that more individuals have the opportunity to save for their retirement, regardless of their employment status.
3. Enhanced EPF Member Protection Plan
To bolster healthcare coverage and social protection, the existing i-Lindung platform will be expanded to include health insurance and takaful options. Members can utilize their Akaun Sejahtera savings to subscribe to Malaysian Health Insurance Takaful (MHIT) plans. This enhancement broadens medical protection options for members and encourages wider participation in insurance and takaful, thereby strengthening social protection for all Malaysians.
4. Increased Hajj Withdrawal Facility
For members intending to perform the Hajj pilgrimage, the withdrawal limit under Akaun Sejahtera has been increased from RM3,000 to RM10,000. This adjustment provides greater flexibility in managing Hajj-related expenses, ensuring that members can fulfill this religious obligation without financial strain.
5. Voluntary Contribution Limit Raised
In response to rising living costs and longer life expectancy, the EPF has raised the voluntary contribution limit to RM100,000 per year. This increase allows individuals to bolster their retirement savings more significantly, aligning with the new Retirement Income Adequacy framework, which sets a savings target of RM290,000 by 2026.
Why These Initiatives Matter
These enhancements reflect Malaysia’s commitment to ensuring that all individuals, regardless of their employment status, have access to adequate retirement savings and social protection. By expanding coverage to gig workers, homemakers, and other informal sector participants, the government aims to create a more inclusive and resilient financial ecosystem.
How to Get Started
To benefit from these initiatives:
- Register for i-Saraan Plus through your gig platform or EPF.
- Enroll in i-Suri if you’re a homemaker and meet the eligibility criteria.
- Utilize i-Lindung to explore health insurance and takaful options.
- Plan your voluntary contributions to maximize the new RM100,000 annual limit.
To know more, refer here.