#EPF Guideline
Notes on EPF Withdrawal guidelines from the fund for the purpose of:
| A. | Withdrawal to Buy Build House or #Shop #House |
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With effect from 1 November 1994, EPF BOARD introduced a new system whereby the contributions standing to the credit of and received in respect of each member shall be apportioned into three (3) accounts as follows:
| Contributions | Purpose of account |
| Account I | 60% | for retirement |
| Account II | 30% | for housing and pre-retirement |
| Account III | 10% | for medical expenses |
30% of the amount standing to the credit of the member is kept in Account II which may be withdrawn for housing purposes. It may also be withdrawn, upon the member reaching the age of 50, for retirement plans to be made.
Housing Purpose
For housing purposes, the withdrawals are to enable the member to:
A. buy/build a house or shop house with residential unit
B. reduce/settle the balance of housing loan
A member is eligible to apply for withdrawal if he:
- is buying/building a house or shop house with the #residential unit;
- has not made any previous withdrawal for housing purposes;
- has entered into a sale and purchase agreement to buy/build a house within two years prior to the date of receipt of the application by EPF Board. For those who have entered into the sale and purchase agreement exceeding the two years period, they are eligible to make a withdrawal under the Withdrawal to reduce/settle the balance of housing loan scheme;
- has not attained the age of 55 at the time of application.
A member is ineligible to apply if he:
- is buying only vacant land or house excluding land
- is buying the house on hire-purchase
- is carrying out renovations repairs and additional works to an existing house
For individual/joint purchases, the members may make withdrawals from the Fund for an amount equivalent to:
- the amount of difference between the cost price and the loan with an addition of 10% of the cost price; OR
- the whole amount standing to the credit of the individual/joint members whichever is the lower.
- For joint purchases, the EPF Board will process the application from the first purchaser and if the amount so is withdrawn is insufficient to meet the total eligible amount required, then only the application from the second purchaser will be processed.
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| B. | Withdrawal to Settle / Reduce Housing Loan |
| A member may withdraw his EPF credit in Account II in order to reduce/settle any outstanding housing loan. Such withdrawal may be made once in every 3 years until the member attains the age of 55 years.
A member is eligible to withdraw:
- The total amount standing to his credit Account II, or
- the total outstanding balance of the #housingloan , whichever is the lower
- For joint purchases, the EPF Board will process the application from the first purchaser and if the amount so is withdrawn is insufficient to meet the total eligible amount required, then only the application from the second purchaser will be processed.
i) Aged Below 50 years old
- Open a fixed deposit account of RM300,000.00.
- After a period of one year, the participant can withdraw up to RM240,000.00 for approved expenses relating to house purchase, education for children in Malaysia, and medical purposes.
- Must maintain a minimum balance of RM60,000.00 from the second year onwards and throughout stay in Malaysia under this program.
ii) Aged 50 years and above
- Can either choose to:
| · | Open a fixed deposit account of RM150,000.00; OR |
| · | Show proof of monthly off-shore income of RM10,000.00 such as pension scheme. |
- After a period of one year, the participant who fulfills the fixed deposit criteria can withdraw up to RM90,000.00 for approved expenses relating to house purchase, education for children in Malaysia, and medical purposes.
- Participants must maintain a minimum balance of RM60,000.00 from the second year onwards and throughout stay in Malaysia under this program.
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For the latest information, please visit: http://www.kwsp.gov.my/
Call 03 – 8922 6000
Fax 03 – 8922 6222
Operating Hours: Mon – Fri 8.00AM to 6.00PM
(Excluding Saturdays, Sundays, Federal Territories and Selangor Public Holidays)
