Is the EPF relief separate from the PRS relief?

Yes. For year of assessment 2025, LHDN lists life insurance and EPF as one relief capped at RM7,000, and deferred annuity and PRS as another, capped at RM3,000. A saver using both in full has RM10,000 of relief for retirement saving.

Do my mandatory EPF contributions count toward the relief?

LHDN's wording for the first part of the life insurance and EPF relief is "mandatory contributions to approved schemes or voluntary contributions to EPF (excluding private retirement schemes) or contributions under any written law", restricted to RM4,000. Whether your own payslip contributions are claimed this way is for LHDN or your employer's payroll to confirm; this page does not do your return.

Which year do these amounts apply to?

They are the amounts LHDN lists for year of assessment 2025, the latest year its pages list: income you earned in 2025, declared in 2026. Later years may differ, and the Budget can change them. Check LHDN before you rely on a figure for a year it does not yet list.

How much is a relief worth to me?

It is the tax on the income the relief removes, so it depends on your band. Taking RM1,000 off income taxed at 11% saves RM110; at 25% it saves RM250. The table of bands on this page shows where your income sits.

Tax reliefs for retirement saving in Malaysia

The income tax reliefs that apply to saving for retirement in Malaysia, with LHDN's amount for each, the one cap EPF shares with life insurance, and what a relief is worth at your tax band.

Amounts in ringgit (RM) for year of assessment (tahun taksiran) 2025, the latest LHDN (Lembaga Hasil Dalam Negeri) lists.

LHDN personal tax reliefs (pelepasan cukai) that touch retirement saving, YA 2025.

Relief	Amount a year	What it covers
Individual and dependent relativesIndividu dan saudara tanggungan	RM9,000	Every resident claims it. It is not retirement saving; it is here because it sets how much income is taxed at all.
Life insurance and EPFInsurans nyawa dan KWSP	RM7,000 in all	Two parts under one cap: up to RM4,000 for mandatory contributions to approved schemes or voluntary contributions to EPF (private retirement schemes excluded), and up to RM3,000 for life insurance or family takaful premiums or additional voluntary EPF contributions.
Deferred annuity and Private Retirement Scheme (PRS)Skim Persaraan Swasta dan Anuiti Tertangguh	RM3,000, separate from the cap above	PPA says the PRS relief is available until assessment year 2030.
Insurance premium for education or medical benefitInsurans pendidikan dan perubatan	RM4,000	Not a pension relief, but it is the relief a medical insurance plan for later life claims under.
Social Security Organisation (SOCSO) contributionsCaruman kepada Pertubuhan Keselamatan Sosial (PERKESO)	RM350	Contributions to the Social Security Organisation (PERKESO), listed for completeness.

The EPF part of this is a cap on what you can claim, not on what you can save: the EPF (KWSP) is a separate account with its own contribution rules, and this page covers the tax reliefs.

What a relief is worth: the tax bands

A relief comes off your income before tax, so it saves tax at your top rate. LHDN's resident bands for years of assessment 2023 to 2025 are below. Chargeable income (pendapatan bercukai) is what is left after your reliefs.

Resident individual income tax, YA 2023 to 2025.
Chargeable income	Rate on this band	Tax at the top of the band
RM0 to RM5,000	0%	RM0
RM5,001 to RM20,000	1%	RM150
RM20,001 to RM35,000	3%	RM600
RM35,001 to RM50,000	6%	RM1,500
RM50,001 to RM70,000	11%	RM3,700
RM70,001 to RM100,000	19%	RM9,400
RM100,001 to RM400,000	25%	RM84,400
RM400,001 to RM600,000	26%	RM136,400
RM600,001 to RM2,000,000	28%	RM528,400
Above RM2,000,000	30%

An example, not your figure: a chargeable income of RM110,000 before the retirement reliefs owes RM11,900. Using the full RM7,000 life insurance and EPF relief and the full RM3,000 PRS relief takes RM10,000 off, leaving RM9,400 of tax: a saving of RM2,500.

Questions people ask

Is the EPF relief separate from the PRS relief?: Yes. For year of assessment 2025, LHDN lists life insurance and EPF as one relief capped at RM7,000, and deferred annuity and PRS as another, capped at RM3,000. A saver using both in full has RM10,000 of relief for retirement saving.
Do my mandatory EPF contributions count toward the relief?: LHDN's wording for the first part of the life insurance and EPF relief is "mandatory contributions to approved schemes or voluntary contributions to EPF (excluding private retirement schemes) or contributions under any written law", restricted to RM4,000. Whether your own payslip contributions are claimed this way is for LHDN or your employer's payroll to confirm; this page does not do your return.
Which year do these amounts apply to?: They are the amounts LHDN lists for year of assessment 2025, the latest year its pages list: income you earned in 2025, declared in 2026. Later years may differ, and the Budget can change them. Check LHDN before you rely on a figure for a year it does not yet list.
How much is a relief worth to me?: It is the tax on the income the relief removes, so it depends on your band. Taking RM1,000 off income taxed at 11% saves RM110; at 25% it saves RM250. The table of bands on this page shows where your income sits.

Sources: LHDN's tax reliefs and income tax rates pages, and PPA's PRS tax relief page. This is general information, not financial or tax advice; LHDN decides what applies to your return.