oyee’s share of the contributions, including the dividends accrued on the contributions, after returning the government’s share of contributions to Retirement Fund (Incorporated) (KWAP).
Additional Information
- Following the pensionable employees withdrawal, the employee is no longer an EPF member as he is considered to have made full withdrawal of his savings. If he is re-employed with a private agency in future, he is obligated to re-contribute to EPF using the same EPF number again.
- Employee can choose to re-contribute to EPF even after opting for the pensionable employees withdrawal by filling in the KWSP 6A (1) Form. The statutory contribution rate is no less than RM50.00 and no more than RM5,000.00 per month. However, the contribution is part of the member’s salary only and member’s employer is no longer required to contribute.
4. Members Investment Withdrawal
Under this scheme, members’ with savings that exceed their Account 1 basic savings amount by at least RM 5,000, are allowed to withdraw 20% from the excess savings to be invested through Ministry of Finance approved Fund Management Institutions (FMI).
This table lists the benchmarked basic savings according to members’ ages.
Withdrawal Limit
The maximum withdrawal sum is calculated as follows:
(Account 1 – Basic Savings) x 20%
Additional Information
- Depending on the members’ savings in Account 1, subsequent investment may be done in 3 months following the previous transfer.
- Once the investment units are sold, the withdrawn sum AND the gains from the investment must be returned to the members’ Account 1.
- Members are not allowed to withdraw sums from said investment.
- EPF dividends will only be based on existing savings in EPF Accounts. Thus, the withdrawn amount will not be considered for dividends.
- There is no service charge for investment through FMIs.
5. Savings of More than RM1 Million Withdrawal
This withdrawal allows EPF members to withdraw their savings if their credit is at least RM1.05 million.
Withdrawal Limit
No less than RM50, 000 from Account 2. If insufficient, the balance will be taken from Account 1.
Additional Information
- The total savings must be cash savings in EPF only and does not include the savings invested with the approved External Fund Managers or the Insurance Companies for Annuity.
- Withdrawal can be done once in a 3 months, and a new application is needed for each withdrawal.
6. Health Withdrawal
Health withdrawal allows EPF members to withdraw their savings from Account 2 to pay for medical expenses incurred for the treatment of critical illnesses AND/OR to buy medical aid equipment, as approved by the EPF Board, for themselves or their allowed family members.
Withdrawal Limit
Cost actual medical cost or whole Account 2 savings. (Whichever is lower)
Additional Information
- If the employer has covered part of the medical expenses, employees can withdraw the remaining balance subjected to the savings balance in Account 2.
- The list of critical illnesses approved by the EPF Board is here.
7. Hajj Withdrawal
As of 2013, certain members are allowed to withdraw savings from their Account 2 in order to fund their Hajj trip. The amount, however, is capped and should only be used to supplement basic expenses; not the entire cost of the trip. This is so that the withdrawal would not undermine the members’ retirement savings.
In order to be eligible for the withdrawal, one or more of the following must be true:
In order to be eligible for the withdrawal, one or more of the following must be true:
- Members below 55 years old, who’ve received a letter with the ‘SELECTED’ status from Lembaga Tabung Haji (LTH);
- Members with insufficient savings in LTH.
Withdrawal Limit
The allowed withdrawal sum is the lower of the two methods listed below:
- Members’ LTH Savings – Total Cost for Hajj < RM 3,000
- Account 2 balance
The total cost for Hajj, as prescribed by LTH, depends upon the different years. For example, for current first time pilgrims, Hajj fees are RM 9,980. Note that, this cost is subsidized (RM 6,175) by LTH for first time pilgrims. This subsidy is not offered to those who have already performed Hajj before.
Additional Information
- The EPF/KWSP Hajj Withdrawal is only offered once to all applicants.
Conclusion
There are numerous options for EPF/KWSP withdrawals that aren’t known to many. That said, it is imperative that you weigh the pros and cons of taking money out of your EPF accounts. The extra cash could come in handy in future. For a list of other EPF/KWSP withdrawals please refer to their website over here.
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EPF Withdrawals
Details on Malaysia’s EPF (KWSP) Account 1 VS Account 2 withdrawals. The 15 different categories of withdrawals have been divided into Account 1 only, Account 2 only & both accounts withdrawals. Information is for general reference only & is an unofficial summary based on EPF’s official website. Additional forms, documents required & details may not be listed.
Updated: Dec 17, 2018
EPF Account 1 Members’ Savings Investment Withdrawal (EPF-MIS)
- Effective 2017 Jan 1 with higher minimum Basic Savings amount (Previous minimum Basic Savings)
- EPF approved investment funds only
- Min 3 months from last investment date
- On funds sold, amount returns to your EPF Account 1
- Min 1000 per investment
- Max 30% of amount in excess of Basic Savings (Min balance)
[Formula: Account 1 Ttl – Basic Savings * 20%]
E.g. Age 30 | Account 1 Ttl: 60kMax invest: 60k – 29k * 30% = 9.3k
Withdrawal to Purchase / Build a House
- Individual /Joint (immediate family OR no relationship) / Help Spouse
- Age < 55
- Buy / Build Residential (Note: Shop lot with residential unit qualifies)
- Financed through housing loan (EPF approved institution) / Cash purchase
- Not for renovation / 3rd house / overseas property / land
- Min 500
- Withdrawal for Housing loan: max 110% of house price less downpayment
- E.g. House price: 500k | Housing loan: 90% (450k)
Max withdrawal: 500k – 450 k * 110% = 55k
- E.g. House price: 500k | Housing loan: 90% (450k)
- Withdrawal for 100% housing loan (Zero downpayment): max 100% of house price
- Withdrawal for cash purchase: max 110% of house price
- Max total Account 2 balance
Withdrawal to Reduce / Redeem Housing Loan
- Individual /Joint (immediate family OR no relationship) / Help Spouse
- Age < 55
- Buy / Build Residential (Note: Shop lot with residential unit qualifies)
- Outstanding loan balance from approved Financial Institution
- Not for renovation / 3rd house / overseas property
- Withdrawal for 2nd house allowed only when first house is sold or disposed
- Only 1 application per year (from the previous housing loan withdrawal date)
- Total housing loan balance / Total Ac 2 / Min 500
Housing Loan Monthly Installment Withdrawal
- Age < 54 yrs & 6 mths
- Must be Buyer (or Builder) AND Borrower
- Pay actual monthly installment
- Max withdrawal: Total housing loan / Total Ac 2 / Cannot exceed monthly installment payment
- Min: 100 x 6mths
- Allowed to withdraw simultaneously for reduce housing loan balance AND loan monthly installment
- Payment for Refinancing
- Based on original loan balance OR latest loan balance (whichever is lower)
- Not eligible if the original loan balance is fully settled
Flexible Housing Withdrawal
- Process to set aside part of Account 2 savings to Flexible Housing Withdrawal Account to obtain a higher housing loan (aka Ring Fencing)
- Monthly contribution to EPF considered as income
- Savings in Flexible Housing Withdrawal Account CANNOT be used for housing, education, health & age 50 withdrawals
- Released only at age 55 / Full withdrawal (i.e. Leaving Country Withdrawal) / Death Withdrawal
- EPF Annual Dividends will still be given & credited into Ac 2
- Buy / Build Residential (Note: Shop lot with residential unit qualifies)
- Not for renovation / overseas property / land
- Age < 54
- Min savings period of 1 year
- Only for 1 house at a time
- Max application < Housing loan amount
- Transfer: One time (optional) + monthly
Education/PTPTN Withdrawal
- Self / Parent of Child
- PTPTN, Diploma, Advanced Diploma, Bachelors Degree, Masters Degree, Doctor of Philosophy or
equivalent - Local Institutions of Higher Learning:
- Academic (Full time, part time or distance learning)
- Professional Courses
- Vocational Courses
- Foreign Institutions:
- Full time
- Distance learning
- Tuition Fees / Lodging Fees / Study Loan
- Every Semester / Every Year
- Can withdraw multiple times as long as Ac 2 balance remaining
- Can file joint application with spouse for child
- Interview with EPF Officer required
Health Withdrawal
- For medical expenses and/or medical equipment for family members upon critical illness
- Family members: spouse, children, parents (including parents-in-law & step-parents), siblings
- Can make joint withdrawal with family members
- Max withdrawal: Total Ac 2 OR actual medical cost (whichever lower & only on amount not covered by medical insurance)
- Withdrawal can be for EPF approved medical aid equipment (wheelchairs, oxygen therapy, hearing aid, etc)
Age 50 Years Withdrawal
- Age 50-55
- 1 time only
- Full / Partial (one time withdrawal allowed only)
Age 55 Years Withdrawal
- Age > 55
- Full / Partial (min 2k; every 30 days) / Monthly (min 250 p.m.)
- From 2018 Jan: Full / Partial (no minimum) / Monthly (min 100 p.m.)
- Age > 60
- Starting from Jan 1, 2017 any EPF contributions made from age 55-60 will be into EPF Akaun Emas
- Full / Partial withdrawal from Akaun Emas only allowable upon reaching age 60
Hajj Withdrawal
- Age < 55
- Received letter with status Selected from LTH (Lembaga Tabung Haji)
- Insufficient savings in LTH
- Max withdrawal: 3000
Account 1 & 2
Death Withdrawal
- Submitted by nominee
- If no nominee, submitted by administrator / next of kin
- Death certificate & Submitter’s NRIC required
- With Nomination: Full withdrawal
- Without Nomination:
- EPF Account 1 & 2 Total < 2500: Full withdrawal
- 2500 < EPF Total < 25000: 2500 (1st 2mths) & Remainder (after 2mths)
- EPF Total > 25000: 2500 (1st 2mths), 17500 (after 2mths) & Remainder to person who provides Letter of Administration/ Letter of Probate/ Distribution Order (Land Office)/ Faraid Certificate (Syariah Court)
- Compassion additional death benefit of RM2,500 may be given to next-of-kin provided application made within 6 months for Malaysian citizens below 55
Pensionable Employees Withdrawal And Optional Retirement Withdrawal (Public Service)
- Employed in Public Service & emplaced in pensionable establishment
- Optional Retirement from Public Service
- Full withdrawal employee share of contribution including dividends if still have savings in EPF after government share returned to Retirement Fund (Incorporated) (KWAP)
- No longer considered a worker as defined by EPF act
Leaving Country Withdrawal
- Letter of Renounciation of Citizenship (Form K / Form Y) & other documents
Withdrawal Of Savings Of More Than RM1 Million
- Age < 55
- EPF savings (Total Account 1 & 2) min 1.05 million
- Min withdrawal: 50k (from Account 2 & if insufficient from Account 1)
Incapacitation Withdrawal
- Confirmed incapacitated, physically or mentally
- Achieved the level of Maximum Medical Rehabilitation (MMI) to work by a doctor who has examined you AND by a medical doctor in a Medical Board appointed by EPF
- Application supported with medical report dated < 1 year from date application received
- No longer working at time of application
- Requirement to attend interview session
- Additional Incapacitation Benefit from EPF of 5000
- Full
FAQ
Q: How can I check/claim unclaimed monies in EPF?EPF has launched an online Unclaimed Contribution Information Search.
Q. Is there a limit to the number of EPF withdrawals? For example, if I overlap my withdrawals from Ac 2 to serving housing loan & education loan.
A: You can have multiple withdrawals ongoing. However, it is subject to individual withdrawal limits. For example, you can only withdraw to reduce your housing loan after 12mths from the last withdrawal date.
Note: You can only have 1 home loan withdrawal from Ac 2 at any time
A: You can have multiple withdrawals ongoing. However, it is subject to individual withdrawal limits. For example, you can only withdraw to reduce your housing loan after 12mths from the last withdrawal date.
Note: You can only have 1 home loan withdrawal from Ac 2 at any time
Q: If I bought a property previously financed with Ac 2 withdrawal & later sold it off, would I be able to withdraw from Ac 2 usual for a new property purchase?
A: Yes. When you sold off your property, the amount you originally withdrew from Ac 2 would be returned to Ac 2. You can now withdraw from Ac 2 to purchase your new property.
A: Yes. When you sold off your property, the amount you originally withdrew from Ac 2 would be returned to Ac 2. You can now withdraw from Ac 2 to purchase your new property.
Q: If a person really wanted to, could he/she deposit extra money into either EPF account?
A: Yes you can make extra EPF contributions but only to Ac 1 which can only be withdrawn after age 55. If your EPF & insurance monthly contribution total is < 500 a month, you may want to consider making an extra contribution. EPF min returns 2.5%. Subject to EPF investment performance. One may want to invest in a vehicle with higher returns/liquidity (FD, endowment, shares, UT, property)
A: Yes you can make extra EPF contributions but only to Ac 1 which can only be withdrawn after age 55. If your EPF & insurance monthly contribution total is < 500 a month, you may want to consider making an extra contribution. EPF min returns 2.5%. Subject to EPF investment performance. One may want to invest in a vehicle with higher returns/liquidity (FD, endowment, shares, UT, property)
Contributing More Than The Statutory Rate (From EPF website):
You or your employer, or both, may contribute at a rate exceeding the statutory rate through the following options:
You or your employer, or both, may contribute at a rate exceeding the statutory rate through the following options:
If only you opt to contribute at a rate exceeding the statutory rate, you may submit a notice of election to contribute at a rate exceeding the statutory rate using Form KWSP 17A (AHL).
If only your employer opts to contribute at a rate exceeding the statutory rate, your employer may submit a notice of election to contribute at a rate exceeding the statutory rate using Form KWSP 17 (MAJ).
If both you and your employer opt to contribute at a rate exceeding the statutory rate, you and your employer may submit a notice of election to contribute at a rate exceeding the statutory rate using Form KWSP 17A (AHL) and Form KWSP 17 (MAJ) respectively.
This rate will be the new statutory rate and shall remain so until you and/or your employer submit a notice of cancellation using Form KWSP 18A (AHL) and Form KWSP 18 (MAJ) respectively. Upon receipt of the notification, the rate of contribution will be reverted to the current statutory rate.
If only your employer opts to contribute at a rate exceeding the statutory rate, your employer may submit a notice of election to contribute at a rate exceeding the statutory rate using Form KWSP 17 (MAJ).
If both you and your employer opt to contribute at a rate exceeding the statutory rate, you and your employer may submit a notice of election to contribute at a rate exceeding the statutory rate using Form KWSP 17A (AHL) and Form KWSP 17 (MAJ) respectively.
This rate will be the new statutory rate and shall remain so until you and/or your employer submit a notice of cancellation using Form KWSP 18A (AHL) and Form KWSP 18 (MAJ) respectively. Upon receipt of the notification, the rate of contribution will be reverted to the current statutory rate.
Q: Can I withdraw from Ac 2 to purchase overseas house, marriage or a personal loan?
Unfortunately the withdrawal is not allowed to buy a house abroad, marriage, personal loan or other purpose not stated explicitly by EPF.
Unfortunately the withdrawal is not allowed to buy a house abroad, marriage, personal loan or other purpose not stated explicitly by EPF.
Q: Can I withdraw for my children’s university studies?
Yes for diploma or equivalent & higher studies in academic / professional / skill-based / vocational course in an authorised institution of higher learning. Including tuition fees & airfare. You will need to submit offer letter & other relevant documents.
More info: kwsp.gov.my
Yes for diploma or equivalent & higher studies in academic / professional / skill-based / vocational course in an authorised institution of higher learning. Including tuition fees & airfare. You will need to submit offer letter & other relevant documents.
More info: kwsp.gov.my
Q: Is it true that EPF does not pay dividends if you keep your money in EPF above age 75?
There was a 2008 EPF policy that was never enforced. It has since been amended in 2015 (EPF Enhancement Initiative 3) & dividends kept voluntarily in EPF are given until age 100. Subsequent to age 100, the money will be transferred to Registrar of Unclaimed Monies.
There was a 2008 EPF policy that was never enforced. It has since been amended in 2015 (EPF Enhancement Initiative 3) & dividends kept voluntarily in EPF are given until age 100. Subsequent to age 100, the money will be transferred to Registrar of Unclaimed Monies.
Q: For those who have passed the age of 55, can the Akaun 55 be used to withdraw for investments in EPF approved unit trusts?
EPF’s MIS UT withdrawal is eligible until age 55 only. After age 55, Akaun 55 balances can be withdrawn. New EPF contributions in Akaun Emas can only be withdrawn upon reaching age 60.
63 thoughts on “EPF Withdrawals”
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EPF Withdrawal: Utilise The Savings Wisely
Treating your Employees Provident Fund (EPF) account like an ATM is a bad habit that may hurt you in the long run.
EPF is a scheme for working adults in Malaysia to automatically set aside funds for retirement. Members are allowed to withdraw money from their account for certain reasons. However, by not withdrawing, you are allowing your money to grow and compound over time, based on the rate of return that is guaranteed to you. This is the dynamic that will help your retirement nest grow into something large over time.
EPF earns a healthy dividend every year, which helps contributors grow those savings over their working years, to fund their retirement years.
Therefore, withdrawing EPF savings is not advisable as this savings are primarily meant for retirement, one of the most important financial goals in your life. Compounding of the fund works best if the fund is left uninterrupted to compound every year until it matures when you turn 55.
When can you make withdrawals?
Your EPF account is divided into two – Account 1 and Account 2. Out of the contribution to EPF, 70% goes into Account 1 while 30% goes into Account 2. Members can make withdrawals from both of these accounts for these purposes as stated by EPF:
Misusing EPF withdrawals can be fatal for your retirement
While there may be times where you need funds for various purposes, simply withdrawing from your EPF should be best avoided. Raiding your EPF can have the following consequences:-
- Any premature withdrawal from EPF will reduce the amount of your retirement savings. EPF savings is for retirement, not for present-day needs. If you are planning to withdraw your EPF savings by age 50 or 55, just because you can, you need to rethink your financial strategy. If you don’t have a good reason to withdraw the money, or a solid plan to invest the money, it is better to keep the money in your EPF account for a few more years and earn more returns.
- Retirement planning would be disrupted as withdrawals will affect the fund accumulation process. By constantly withdrawing from your EPF you are adversely obstructing the funds in these accounts from snowballing into a big amount that can fund your retirement.
- By making withdrawals from our EPF to fund other goals, you end up pushing your retirement age further or forcing yourself into making higher contributions during the last few years of your employment. Saving for old age is a marathon, not a sprint – one that takes decades to complete.
- You may start spending uncontrollably as it would be cultivated in your mind that “I still have money in EPF”. There is a tendency for you to take it for granted. Don’t treat the money as a windfall – you will inevitably suffer in your golden years.
Avoid depleting your EPF savings
According to EPF’s statistics, 93,914 members have withdrawn RM500.8 million under the health withdrawal scheme, since its implementation in 1994.
By pushing your retirement planning further down your priority list, you are taking a huge risk with your finances. There are various ways to avoid depleting your EPF savings, such as:
- Purchase adequate medical insurance with the appropriate riders to ensure coverage is enough in times of sickness. Then, you won’t have to withdraw from your EPF. Let’s be clear; EPF savings is your retirement fund, not your emergency fund.
- Your child’s education should be planned way in advance – either through education-linked insurance policies, or other investment vehicles. EPF savings should not be used to fund your child’s education.
- All big financial decisions should be planned and saved for in advance, instead of grappling to afford something by using funds saved for other reasons.
If you use your EPF funds for any of the above purposes, you could be losing thousands of Ringgit in returns by interfering with the process of compounding your capital. This will affect your financial freedom attainment at the end of the day.
Every time you are tempted to withdraw money from your EPF account, ask yourself if raiding your savings is the best and only option you have. Unless you plan on working until you are 70 or 80, it behoves you to leave your savings untouched so you can attain retirement as close to when you plan it.
Thinking of other ways to invest to support your retirement savings? Consider angel investing, Malaysian REITs and foreign REITs.
You can invest in your golden years. Discover low-risk investmentsthat retirees can consider investing in.
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Now I wish to withdraw for my property which was purchased at February 2014.
Can I?
Kindly let me know the list of documents need for PF withdrawal for purchasing a house.
My EPF account no.2 balance amount is approx. RM650K. Remaining amount will be paid by Cash.
KL6633
that with the new acct Emas, there will be no withdrawal of EPF money till 60 years old.Kindly clarify.
Thank you.
◘ Thus one who is self-employed (where no more monthly EPF contributions is made) falls into this category?
Thanks
Skin
1. You have chosen optional retirement from the Public Service and no longer employed OR
2. You have chosen optional retirement from the Public Service and reemployed with a different employer or self-employed OR
3. You have served in a government agency and have opted for retirement under a privatisation or corporatisation exercise but continue to work with the same agency
4. Below age 55
Borang Pindahmilik KTN 14A atas nama ahli yang telah disempurnakan oleh Pejabat Tanah ATAU sekurang-kurangnya Borang Pindahmilik KTN14A telah lengkap ditandatangani berserta resit penyata perserahan oleh Pejabat Tanah”
so they expect u buy a house that under your own name?
and in order to submit the change of name u need to paid the seller 100%. then why u need EPF then?
Tom
I purchased a property in 2013 and took a 90% loan but the loan has not yet been fully disbursed therefore, i’m currently still paying interest. Will I be able to withdraw from EPF Acc 2 to serve the interest and thereafter the full installment once it’s fully disbursed?
My ac2, now with approximate 70k, can withdraw full?
(i) A Malaysian Citizen; OR
(ii) A Malaysian Citizen who has made Leaving The Country Withdrawal before 1 August 1995 and later opted to re-contribute to the EPF; OR
(iii) A Non-Malaysian Citizen who:
Has become an EPF member before 1 August 1998; OR
Has obtained a Permanent Resident status (PR).
Have not reached the age of 55 on the date the application is received by EPF; AND
Still have savings in Account 2.
I want to know can I withdraw money from Account and invest in FD??
If a person who is ,unemployed at age of 50, and struggle to pay for housing loan. can withdrawal money from his 2nd account to pay the money?
I want to know can I withdraw money from Account 2 and started business?
Thanks for the insight!
As I read that “Not for 3rd house” in this article, below my case:
I had made a withdrawal from Acct 2 in Aug 2015 to July 2016 for “Housing Loan Monthly Installment Withdrawal”, where EPF deposited the payment to my personal account.
Now that I made a purchase on 2nd house, can I withdraw to pay my down payment? FYI, first house still yet to be disposed (not intend to).
If i pump in money in January 2018 into KWSP, would i enjoy the dividend declare on February 2018?