Practical training report: Employee Provident Fund (EPF) / Nur Illyyannie Marhainis

As the government servant will have pension as their retirement benefit, the government have come out with new initiative to help the employees who work at the private sector during their retirement phase. Due to that, Employee Provident Fund has been implemented to help those employees. Employee Provident Fund (EPF) is a social security institution formed according to the Laws of Malaysia which is Employees Provident Fund Act 1991 (Act 452) which provides retirement benefits for members through management of their savings in an efficient and reliable manner. Besides, it also manages the compulsory savings plan and retirement planning for private sector workers in Malaysia. The membership of EPF is mandatory for Malaysian citizens who employed in the private sector and it also voluntary for non-Malaysian citizens. It was established in 1951 pursuant to the Employees Fund Ordinance 1951, under the National Director of Posts. This law became the Employee Provident Fund Act 1951 in 1982, then the Employee Provident Fund Act 1991 in the year of 1991. The Employee Provident Fund Act 1991 required employees and their employers to contribute towards their retirement savings and it also allow workers to withdraw these savings at retirement age or for special
purposes.