EPF allows members to make either a partial or full withdrawal from their savings to meet specific needs. These needs are categorised as retirement and pre-retirement, with Account 1 used for withdrawals upon retirement while Account 2 is used for withdrawals, subject to conditions, for housing, education, medical expenses and etc.
So under what circumstances are members allowed to make a withdrawal?
Types of EPF Withdrawal
A) Partial Withdrawal
A partial withdrawal may be made for the following situations:
1) Age 50 withdrawal
This is as per s54(6)(a) EPF Act.
2) Withdrawal to purchase/build a house
This is as per s54(6)(b) EPF Act.
3) Withdrawal to reduce/redeem housing loan
A partial withdrawal may be made either jointly or individually from Account 2 to reduce/redeem a housing loan balance or assist a spouse with paying off theirs.
4) Housing loan monthly installment withdrawal
A partial withdrawal from one’s Account 2 may be made to help cover monthly housing loan installments for a minimum period of six months or until financial recovery. This withdrawal may be made either individually or with a joint applicant.
5) Flexible housing withdrawal
This means that members may set aside part of the savings in their Account 2 to a Flexible Housing Withdrawal account.
6) PR1MA housing withdrawal
It should be noted that this withdrawal is limited to members who have obtained their housing loan through the Skim Pembiayaan Fleksibel PR1MA (SPEF) and who have never made any Housing Withdrawal OR Have made a Housing Withdrawal but have sold/disposed of the property.
7) Health withdrawal
According to s54(6)(f) EPF Act, a partial withdrawal may be made for medical financing (i.e. to cover medical expenses and/or to buy healthcare equipment).
8) Education withdrawal
According to s54(6)(g) EPF Act, a partial withdrawal may be made if the member of the Fund requires financing for higher learning for themself, their child, spouse, or parent.
9) Hajj withdrawal
As per s54(6)(ga) EPF Act, Muslim members of the Fund may make a partial withdrawal if they have received the letter of offer from Lembaga Tabung Haji to perform the haj and require financing for the cost of performing the haj.
10) Withdrawal of savings of more than RM1 million
According to s54(6)(i) EPF Act, the member of the Fund may make a partial withdrawal if he has a credit that exceeds one million ringgit in their account.
B) Full Withdrawal
A full withdrawal may be made for the following:
1) Age 55 withdrawal
As per s55A(1) EPF Act, a member of the Fund who is 55 years old may be authorised to withdraw all sums or part of the amount standing to their credit.
2) Age 60 withdrawal
According to s55B(2) EPF Act, members of the Fund who have attained the age of 60 may be authorised to withdraw all sums or part of the amount standing to their credit.
3) Death withdrawal
According to s54(1)(a) EPF Act, the withdrawal of all sums may be authorised if the member of the Fund has died.
4) Incapacitation withdrawal
As per s54(1)(c) EPF Act, the withdrawal of all sums may be authorised if the member of the Fund has become physically or mentally incapacitated from engaging in employment.
5) Leaving country withdrawal
As per s54(1)(e) EPF Act, the withdrawal of all sums may be authorised if the member of the Fund is not a Malaysian citizen and is about to leave Malaysia.
6) Pensionable Employees Withdrawal and Optional Retirement Withdrawal
According to s54C(1) EPF Act, a member of the Fund who is a pensionable employee and who has not attained the age of 55 and is still employed with the Government of Malaysia, any State Government, or any statutory or local authority may be authorised to withdraw all sums of money standing to their credit. Besides, as per s54C(2) EPF Act, said member of the Fund may be authorised to withdraw all or part of the sums of money standing to their credit if he is required to retire or has opted for retirement.
