PRS Youth Incentive

Private Retirement Scheme (PRS) is a voluntary scheme that aims to help its contributors to increase their retirement savings while providing more flexibility and choice to the contributors. Contributors can personalise and select the mixture of funds that best suits their risk and preference on potential return. It is an additional way to boost total retirement savings, whether you are an Employee Provident Fund (EPF) member, the PRS can complement your EPF savings. Any individuals who has attained the age 18 years may make a contribution to any fund under the PRS.

In addition, you can also enjoy personal tax relief* up to RM3000 per year on top of the RM6000 per year tax relief for the EPF contribution and life insurance premiums.

As an initiative by the Government to instill the culture of voluntary retirement savings at an early age, a one-off incentive of RM500 by the government was announced in the Budget 2014 for young individuals who contribute to a PRS Scheme, with a minimum cumulative contribution of RM1000 within a calendar year between 2014-2018.

In the Budget 2017 tabled on 21 October 2016, the incentive amount was increased by the government from RM500 to RM1,000 for eligible Malaysians aged between 20-30 years. To qualify the young individuals must accumulate a minimum gross contribution amount of RM1,000 in the PRS during a period of two years from 2017-2018.

*For contributions into the PRS and deferred annuities effective from years of assessment 2012 to 2021.

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