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: Jul 31, 2019

epf-accounts

EPF Account 1 Withdrawal

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: 60k
    Max invest: 60k – 29k  * 30% = 9.3k

EPF Account 2 Withdrawal

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 1st or 2nd 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
  • 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 3rd house allowed only when first or second 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
  • Max total of Account 2
  • 1 time only
  • Full / Partial (one time withdrawal allowed only)

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

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 Years Withdrawal (Akaun Emas)

  • Age > 60
  • Starting from Jan 1, 2017 any EPF contributions made from age 55-60 will be into EPF Akaun Emas
  • Full / Part