i-Saraan KWSP 2025: Benefits and How To Register

Many Malaysians work in non-traditional roles today, from small business owners to gig workers, freelancers, and part-time workers. These groups often do not receive mandatory EPF contributions from an employer. To support them, the government introduced i-Saraan KWSP, a voluntary contribution scheme that provides both savings for retirement and special incentives.

Understanding i-Saraan KWSP 2025 is helpful, especially when advising part-timers, contract workers, or freelancers connected to your business. Check the clear breakdown below of what the scheme offers, how to register, and the incentive details for 2025.

What is i-Saraan KWSP?

i-Saraan is a voluntary retirement savings scheme under the Employees Provident Fund (EPF). It is designed for Malaysians who are self-employed or do not have a fixed income. Unlike the standard mandatory EPF contribution, i-Saraan lets individuals save on their own terms while receiving government matching incentives.

This scheme is open to both men and women under 60 years old and is separate from the i-Suri program, which is only for homemakers registered under the e-Kasih database.

Benefits of i-Saraan KWSP

The main appeal of i-Saraan KWSP is the 20% government matching incentive, capped at RM500 per year. This means if someone contributes RM2,500 in a year, they will receive the maximum RM500 incentive credited directly into their EPF Account 1. The lifetime cap for this incentive is RM5,000 or until the member turns 60, whichever comes first.

In addition to the incentive, contributors also enjoy:

Annual EPF dividends on their savings.
Tax relief eligibility as recognised by LHDN.
Death benefits (subject to EPF’s terms and conditions).

For 2025, this 20% incentive is a boost from the previous 15% rate, reflecting improvements announced in the Malaysia MADANI Budget.

Who Can Apply for i-Saraan?

i-Saraan is meant for Malaysians who are not receiving mandatory EPF deductions. Eligible groups include:

Self-employed individuals like small traders, hawkers, or farmers.
Gig economy workers such as e-hailing drivers, delivery riders, and part-time workers.
Freelancers and professionals working on project or commission basis, such as DJs, performers, insurance agents, and real estate agents.
Online business owners and independent consultants.
Homemakers or retirees who do not qualify for i-Suri.

Applicants must already have an EPF membership to participate.

How to Register and Pay for i-Saraan?

Registering for i-Saraan is straightforward and can be done online or at a KWSP branch:

Step 1: Register

Visit the KWSP i-Saraan registration portal or go to any KWSP branch. Provide your MyKad and complete the required form (KWSP 16G (M) for first-time registration).

Step 2: Contribute

There is no monthly minimum, contributors decide how much to save. Payments can be made through several channels:

Online banking (FPX): Maybank, CIMB, RHB, Public Bank, Muamalat.
Bank counters: BSN, Public Bank, Maybank, RHB.
Registered bank agents: BSN agents across Malaysia.
KWSP counters: Cash (up to RM500) or cheque payments.

For manual payments, KWSP form 6A(2) may be used, but it is not required for online transactions.

When is the i-Saraan 2025 Incentive Paid?

The government credits the incentive twice a year. Contributions made from January to June are usually credited around August, while contributions from July to December are credited around March the following year.

For example, contributions in 2024 were credited in August 2024 and March 2025.

What is the Minimum and Maximum Contribution to Get Incentives?

The 20% matching incentive means contributors must save RM2,500 annually to receive the maximum RM500 incentive. Smaller contributions still receive 20%, but below RM2,500 the incentive will be proportionate.

Example:

Contribution of RM1,000 → Incentive RM200
Contribution of RM2,500 → Incentive RM500 (maximum)
Contribution of RM5,000 → Incentive RM500 (maximum cap)

The lifetime incentive limit remains RM5,000.

How Does the Government Pay the i-Saraan Incentive?

KWSP claims the government contribution in two cycles each year. Once the funds are received, they are credited into the member’s EPF Account 1. This account is strictly for retirement savings and cannot be withdrawn until eligible under EPF withdrawal rules.

What Do You Need to Register for i-Saraan?

To register, contributors need only basic documents:

MyKad (NRIC)
EPF membership number
KWSP 16G (M) form for first-time registration

For payments, forms are not required if using online banking or FPX.

More Information

Employers or freelancers seeking more details can visit KWSP’s i-Saraan page or contact the EPF hotline at 03-89226000. Walk-ins at any KWSP branch are also available for registration or inquiries.

FAQs

Can employers help freelancers register for i-Saraan?

Yes. Employers can guide freelancers or part-time workers by providing information on registration steps and contribution options, but the contribution is voluntary and done individually.

Can a gig worker or part-timer apply for i-Saraan?

Yes. Anyone self-employed or without fixed income, including gig workers and part-timers, can apply.

Is there a deadline for contributions to get the incentive?

Contributions are calculated by calendar year. To receive the full RM500 incentive, contributions must reach RM2,500 before the year ends.

Can I contribute monthly or in a lump sum?

Both are allowed. You can contribute regularly or make a one-time payment, as long as the total reaches the amount you want by year-end.

How much is the government incentive for 2025?

20% of total contributions, up to RM500 per year, credited twice annually.

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