Can I withdraw EPF for personal use? What are the types of EPF withdrawal for personal use? Since you are here, there is no doubt you are looking for an answer to one of these questions. In this article, we will teach you how to withdraw EPF for personal use in Malaysia.
The full meaning of EPF is Employee Provident Fund . The program is a retirement saving scheme designed to help employees in Malaysia save for their retirement. Despite it being a retirement program, employee may withdraw his or her money for personal use under certain circumstances before they retire.
EPF withdrawal for personal use simply refers to the withdrawal of a portion of an employee's EPF savings for personal reasons. Under this type of withdrawal, employee are allowed to under certain circumstances, such as when he or she is facing a financial hardship or has urgent medical expenses.
EPF i-Sinar
This program was introduced in 2020 to provide financial assistance to EPF members who are facing financial difficulties due to the COVID-19 pandemic. Eligible members, under this program, are allowed to withdraw up to RM10,000 or a maximum of 10% of their total EPF savings.
Eligibility for the EPF i-Sinar Program
Members must meet the following requirements to be eligible for the EPF i-Sinar program:
- He or she must be an EPF member who has contributed to the fund for at least 12 months
- He or she must have at least RM100 in his EPF account 1
- You must also not have made any EPF withdrawals for the past 6 months
- He or she must have experienced a reduction in his monthly income of at least 30% due to the COVID-19 pandemic
EPF Withdrawal for Medical Expenses
EPF members are also allowed to withdraw their savings for medical purposes. Members, under this scheme, can withdraw any amount from account 2 for medical treatment for yourself, children or spouse.
Eligibility Criteria for EPF Withdrawal for Medical Expenses
You must meet the following requirements to be eligible for EPF withdrawal for medical purposes:
- He or she must have a medical condition that requires treatment or surgery
- He or she must be an EPF member who has contributed to the fund for at least a year
- He must also have at least RM100 in his or her EPF account 1
- The medical condition must be for yourself, children or spouse
Other Conditions for EPF Withdrawal for Personal Use
- Aged 50
- Education
- Buy house / Build house
- Hajj
- Housing loan monthly installments
- Flexible housing
- PR1MA housing
How to Apply for EPF Withdrawal for Personal Use
Follow the steps below to apply for EPF withdrawal for your personal use:
- Log in to your EPF website
- On the application form, submit your personal details such as your full name, ic number, and EPF account number
- Enter the amount you wish to withdraw
- Submit your application and wait for your approval
Once your application is reviewed, you will be notified via SMS or email on the status of your application. Once approved, your money will be deposited to your bank account within five business days.
Read also: EPF Withdrawal 10k
FAQs
Here are some of the most asked questions about EPF withdrawal for personal use in Malaysia:
What is EPF withdrawal for personal use?
It is a term used to describe the withdrawal of a portion of an employee's EPF savings for personal reasons.
Does EPF withdrawal for personal use affect my retirement savings?
Yes, this is because the more withdrawal you make, the more the amount you have saved for your retirement reduces. Therefore, it is recommended that you withdraw your EPF savings only when you face a severe financial hardship.
What should I consider before withdrawing my EPF savings?
Here are the things to consider when withdrawing your EPF savings for personal use:
- Negative impact on your retirement savings
- Tax Implications
- Eligibility for other financial assistance
- Future contribution
Conclusion
We have great confidence that after going through this article you have come to understand everything about EPF withdrawal for personal use. The program or initiative is all about providing financial assistance to members who are facing financial difficulties.
Under this scheme, members can withdraw their savings for medical purposes, for education, build houses, and go for Hajj.
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