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KWSP (Kumpulan Wang Simpanan Pekerja) Malaysia

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KWSP stands for Kumpulan Wang Simpanan Pekerja. Which is the government body that managed the money for workers that can only be withdrew after retired (age of 55). Certain part of the KWSP saving can be withdraw before the age of 55 (eg. for house loan, computer purchase (no longer available), medical expenses…etc.).

Do you know how much your KWSP is?

Quite a lot actually. Every month, both employee and employer have to pay a good amount of money from the basic salary to KWSP. It is illegal if your boss did not do that.

Monthly 

  • Employee  = 11%
  • Employer = 12%
  • Total = 23%

This means that every month you are saving at 23% from your basic salary with KWSP. If your basic salary is RM2000, you are saving RM460 monthly. Every year, you are saving RM5520. With 5% annual interest (most of the time is higher, vary depends on KWSP investment performance) given by KWSP, you have around RM5796 saving per year. Work for 10 years, you have RM57960 at least in your KWSP account.

Say if you started working at the age of 25 (university graduate), average RM3000 salary, retired at age 55, total working period = 30 years, you then got RM260k at least with KWSP. You can take out the money in one big lump sum and enjoy your life…but do remember…RM100 nowadays is probably only worth like RM10 after 30 years, so spend wisely. 🙂