Kuala Lumpur

Working in Kuala Lumpur?

Connect with fellow expats in Kuala Lumpur
Join exciting events and groups
Get information in our Kuala Lumpur guides
Exchange tips about expat life in Kuala Lumpur

Social Security for Expats in Kuala Lumpur

There are a lot of advantages to working in Kuala Lumpur, Malaysia’s only global city and its center for international business. On InterNations, you’ll find the information you need, concerning work permits for expats, income tax, and social security in Kuala Lumpur.
Social security contributions are essential aspects in Malaysia's growing economy.

The System of Social Security

The two pillars of the Malaysian Social Security System are the Employees Provident Fund and the Social Insurance System. The latter administers benefits under two schemes, the employment injury scheme and the invalidity scheme.

The Provident Fund is made up of two individual mandatory accounts per person, both of which receive monthly contributions from the employee and the employer alike. The money in both Provident Fund accounts is used to pay for old-age, disability and survivor benefits when the employee becomes unfit for work or reaches the age of 55. This is the point when he or she may withdraw all funds.

Leaving Country Withdrawal

Before an employee reaches the age of 55, Provident Funds can only be used for government-approved purposes. These can be investment in unit trusts (account no.1) or the purchase of property, paying for education costs, or for the treatment of one of the designated critical illnesses (account no.2).

There is one exception: If you have contributed to the Employees Provident Fund during your time as an expat in Kuala Lumpur, you can withdraw all your funds upon leaving Malaysia. To find out whether you are eligible for a so-called Leaving Country Withdrawal, please fill in the relevant forms provided on the web portal of the Employees Provident Fund and submit them.

Social Security Coverage

Social Insurance is compulsory for all non-foreign employees up to the age of 55 earning more than 3,000 MYR per month. Employee contributions are calculated at 0.5 % of the employee’s monthly wage class earnings, matched by the employer with 0.5% of the monthly payroll. There are 24 different wage classes in Malaysia.

As a private sector employee in Malaysia, you automatically become a member of the Employees Provident Fund. Self-employed persons, domestic workers and foreigners can opt for voluntary coverage.

Minimum contributions to the fund are 11% of the employee’s monthly earnings until he or she reaches the age of 55, and 5.5% thereafter. The employer pays an additional 12% of the employee’s salary into the fund, or 6% once the employee has passed the age of 54. All contributions are split according to the following principle: 70% go into account no.1, 30% into account no.2.


We do our best to keep this article up to date. However, we cannot guarantee that the information provided is always current or complete. 

Adam Malewski

"With all the great information on this site, getting settled in Kuala Lumpur was a piece of cake."

Yasmin Krüger-Darango

"A former business partner recommended InterNations to me when I moved abroad to Malaysia. We still use it to stay in touch."

Global Expat Guide