For most full time employees, EPF savings happen almost automatically.
Every month, part of their salary goes into KWSP, while their employer contributes too.
But for freelancers, small business owners, delivery riders, e hailing drivers, online sellers or those without a fixed monthly income, retirement savings may not be as automatic.
That is where KWSP i-Saraan comes in.
Through i-Saraan, eligible Malaysians can make voluntary EPF contributions and receive a 20% government incentive, capped at RM500 per year. However, this is not free cash that goes into your bank account. It is credited into your EPF savings.
1. What is i-Saraan?
i-Saraan is a voluntary EPF contribution programme for people who are self employed, working in the gig economy or do not have a fixed income.
In simple terms, it helps those who do not receive monthly employer EPF contributions to still save for retirement on their own.
This may include:
| Who may benefit from i-Saraan |
|---|
| Freelancers |
| Small business owners |
| Online sellers |
| Content creators |
| Delivery riders |
| E hailing drivers |
| Part timers without fixed income |
| Informal workers |
EPF says members who contribute under i-Saraan may also enjoy benefits such as annual EPF dividends, death benefit and tax relief eligibility, subject to the relevant terms and conditions.
2. Who can apply for i-Saraan?
According to EPF, these are the basic requirements:
| Requirement | Details |
|---|---|
| Nationality | Malaysian citizen |
| EPF status | Registered EPF member |
| Age | Below 60 years old |
| Work category | Self employed with no fixed income, civil service member under pension scheme, or gig economy worker |
EPF also says civil servants under the pension scheme and military members who are still serving can apply, as long as they are registered EPF members and meet the requirements.
3. How does the RM500 incentive work?
The government incentive is calculated at 20% of your voluntary contribution, capped at RM500 per year.
| Your yearly i-Saraan contribution | Government incentive | Total added into EPF |
|---|---|---|
| RM500 | RM100 | RM600 |
| RM1,000 | RM200 | RM1,200 |
| RM2,500 | RM500 | RM3,000 |
| RM5,000 | RM500 | RM5,500 |
To get the full RM500 yearly incentive, you need to contribute at least RM2,500 in a year under i-Saraan. If you contribute more than RM2,500, your EPF savings will still grow, but the government incentive remains capped at RM500 for that year.
4. Step by step: How to get the RM500 incentive
Here is the simple version:
| Step | What to do |
|---|---|
| 1 | Make sure you are already an EPF member |
| 2 | Check that you meet the i-Saraan requirements |
| 3 | Register for i-Saraan |
| 4 | Make voluntary contributions under i-Saraan |
| 5 | Contribute at least RM2,500 in a year to get the full RM500 incentive |
| 6 | Wait for the incentive to be credited into your EPF account |
So no, you do not just register and immediately get RM500.
You need to contribute first.
5. How to register for i-Saraan
EPF lists several ways to register:
| Registration method | What you need |
|---|---|
| KWSP i-Akaun app | Register through the app |
| EPF website | Register online |
| Self-Service Terminal | MyKad |
| EPF office | MyKad and KWSP 16G (M) form |
After registration, members can start making voluntary contributions through EPF’s available payment channels.
6. How to contribute after registering
Members can make i-Saraan contributions through:
| Payment channel |
|---|
| KWSP i-Akaun app |
| Internet banking |
| Bank agent counters such as BSN, Maybank, Public Bank and RHB Bank |
| Registered bank agent |
| Debit card payment through EPF Mobile Team or Relationship Advisory services |
| Self-Service Terminal |
EPF also allows one time payments and recurring contributions through Auto Simpan via the KWSP i-Akaun app or i-Akaun Member web portal.
7. How much should you save to get the full RM500?
To get the full RM500 incentive, the target is RM2,500 a year.
That works out to about:
| Saving plan | Amount |
|---|---|
| Monthly | Around RM209 per month |
| Weekly | Around RM48 per week |
| Daily | Around RM6.85 per day |
So instead of saving RM2,500 in one go, members can split it into smaller amounts throughout the year.
8. Can you withdraw the RM500 immediately?
No.
This is the part many people may misunderstand.
The RM500 is not a cash payout. EPF says the i-Saraan incentive will be credited into the member’s EPF account twice a year, subject to the receipt of special incentive payments from the government.
For members below 55, the incentive is credited into Akaun Persaraan, also known as Account 1. For members aged 55 and above, the incentive is credited into Akaun Emas.
9. Where do your own contributions go?
For members below 55, i-Saraan contributions are divided into three EPF accounts.
| EPF account | Contribution split |
|---|---|
| Akaun Persaraan | 75% |
| Akaun Sejahtera | 15% |
| Akaun Fleksibel | 10% |
For members who have reached 55, 100% of the contribution goes into Akaun Emas.
EPF also states that all i-Saraan contributions paid to EPF are final and cannot be refunded, so members should check their payment details properly before completing the transaction.
10. Is there a lifetime limit?
Yes.
The i-Saraan incentive has a lifetime limit of RM5,000, or until the member reaches 60 years old, whichever comes first.
This lifetime limit takes effect from 2024 onwards, based on contributions made from 2024 onwards.
11. What about i-Saraan Plus?
Besides i-Saraan, KWSP also has i-Saraan Plus, which was introduced starting 2026.
This is meant for eligible e hailing and p hailing drivers.
The biggest difference is the incentive amount.
| Programme | Who it is for | Yearly incentive cap | Lifetime incentive cap |
|---|---|---|---|
| i-Saraan | Self employed individuals, informal workers and those without fixed income | RM500 | RM5,000 |
| i-Saraan Plus | E hailing and p hailing drivers | RM600 | RM6,000 |
For i-Saraan Plus, eligible members can receive a 20% government incentive, capped at RM600 per year. To get the full RM600, they need to contribute at least RM3,000 a year under i-Saraan Plus.
12. How do e hailing or p hailing drivers join i-Saraan Plus?
For i-Saraan Plus, participation is automatic once a member makes a voluntary contribution through their respective e hailing or p hailing service provider.
EPF says members who have already registered under i-Saraan do not need to register again for i-Saraan Plus. However, they must still be eligible, meaning they work as e hailing or p hailing drivers.
EPF also states that contributions must be made through platform providers under the e hailing or p hailing sectors to qualify for i-Saraan Plus.
13. Quick summary
| Question | Answer |
|---|---|
| Is i-Saraan free cash? | No |
| Do you need to contribute first? | Yes |
| How much to get full i-Saraan incentive? | RM2,500 a year |
| What is the maximum i-Saraan incentive? | RM500 a year |
| Where does the RM500 go? | Into your EPF account |
| Can you withdraw it immediately? | No |
| Who is i-Saraan mainly for? | Self employed, gig workers and those without fixed income |
| What is i-Saraan Plus? | A related scheme for eligible e hailing and p hailing drivers |
| How much to get full i-Saraan Plus incentive? | RM3,000 a year |
| What is the maximum i-Saraan Plus incentive? | RM600 a year |
In short
i-Saraan is not a “claim RM500 from KWSP” scheme. It is more like a reward for saving.
Eligible Malaysians who contribute under i-Saraan can receive a 20% government incentive, capped at RM500 per year. To get the full RM500, they need to contribute RM2,500 in that year.
Meanwhile, eligible e hailing and p hailing drivers may qualify for i-Saraan Plus, which offers up to RM600 yearly incentive if they contribute at least RM3,000 a year.
Either way, the incentive is credited into EPF savings, not paid out as instant cash.
