Self-employed persons who contribute to their own provident fund will receive a subsidy of up to RM300 from the government.
In order to encourage more self-employed people to contribute to the CPF, the government has announced that the i-Saraan Self-employed Provident Fund Scheme will be extended, meaning that self-employed people who contribute to the CPF will also continue to receive the government subsidy in 2023.
Through the i-Saraan scheme, self-employed individuals will receive a 15% government subsidy on their CPF contributions. Currently, the government will provide 15% or a maximum subsidy of RM250, but this will increase to RM300 by 2023.
When a self-employed person contributes RM2,000 to the CPF, with the 15% subsidy, the self-employed person will be entitled to RM300.
However, it is important to note that the i-Saraan Scheme is only applicable to self-employed persons and not to wage earners or salaried persons. If you are not enrolled in i-Saraan and you pay your own monthly provident fund, you will not be able to receive the RM300 government subsidy.
Apart from registering for i-Saraan directly at your nearest KWSP counter, you can also register for i-Saraan directly online. You can visit https://online.kwsp.gov.my/isaraanReg/, enter your ID number and select your occupation. Next, check the box under Terms and Conditions and Human Identification Verification, then click Submit. The CPF Board will process your application.
Online registration for i-Saraan is available from 8am to 9pm Monday to Friday and from 5am to 7pm on Saturdays, Sundays and public holidays. Applications will not be submitted successfully at other times.
After the CPF Board has approved your i-Saraan application, you can make your own CPF contributions through Internet Banking. Some of the Internet Banking companies that support self contribution are MBSB, Maybank, RHB, Public Bank, Bank Muamalat, Alliance Bank, Hong Leong Bank, Bank Islam and CIMB.
In addition, the government has also increased the self-employed person’s CPF contribution limit to a maximum of RM60,000 per annum from 2023 onwards and the self-employed person will not only enjoy a tax deduction of RM4,000 for the CPF contribution but also an additional RM3,000 tax deduction for life insurance.
