EMPLOYEES
FROVIDENT FUND
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TIPS OF THE DAY..
•Believe in yourself.
What others think won’t matter
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OBJECTIVES
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Membership of EPF
EPF Accounts
Contribution
Benefits
Penalties
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MEMBERSHIP
– Employer’s responsibility to register you with
the epf within 7 days of employment
– Remind your employer, register by yourself,
lodge a complaint
– Failure (employer) not exceeding RM10,000
or imprisonment not more than 3 years or
both
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SAVING ACCOUNT
• Acc I – 70% of monthly contribution – retirement
– Withdraw age of 55
– Invest part of savings
• Acc II – 30% of monthly contribution – early
preparations for a comfortable retirement
– Attaining the age of 50
– Owning a house – down payment for 1st house
– Settling the balance of housing loan – 1st house
– Financing education for member & their children
– Medical expenses for members and their children
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SAVING ACCOUNT
• Employee – 11% or 9%
• Employer – 12%
Implication to
-Contributors
-Government
-economy
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WHO ARE LIABLE TO CONTRIBUTE
• Employees who are Malaysian citizens
• Employees who are not Malaysian citizens
but are permanent residents of Malaysia
• Employees who are not Malaysian citizens
but have elected to contribute before 1
August 1998
• 1st week on the 1st month in which he is
paying wages
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BENEFITS
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Attaining age 50 years withdrawal
Attaining age of retirement withdrawal
Withdrawal to purchase house
Incapacitation withdrawal
Leaving the country withdrawal
Health withdrawal
Education withdrawal
Pensionable employees withdrawal
Optional retirement withdrawal
Member’s saving investment withdrawal
Withdrawal of savings of more that 1 million
Death withdrawal
Housing loan monthly installment withdrawal
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withdrawal scheme
• Retirement Withdrawal Scheme
– Monthly Payment Scheme
– Retirement Periodical Payment Withdrawal
Scheme
– Annual Dividend Withdrawal Scheme
– Age 55 Years Withdrawal Scheme
– Age 50 Years Withdrawal Scheme
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Cont..
– Housing Withdrawal Scheme
– To Reduce/Redeem The Housing Loan Withdrawal
Scheme
– To Purchase/Build A House Withdrawal Scheme
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Cont..
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Other Withdrawal Scheme
EPF Member's Investment Scheme
Pensioners Withdrawal Scheme
Pensionable Employees Withdrawal Scheme
Members/Members' Children Education Withdrawal
Scheme
Health Withdrawal Scheme
Leaving Country Withdrawal Scheme
Incapacitation Withdrawal Scheme
Death Withdrawal Scheme
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MEMBERS/MEMBERS’S CHILDREN
EDUCATION WITHDRAWAL SCHEME
• MEMBERS/MEMBERS’S CHILDREN EDUCATION WITHDRAWAL
SCHEME
• EPF members are qualified to apply for this scheme if:
The member or member’s children have registered and paid
the registration fees to enroll as a student for any
academic/professional/vocational programs with any higher
learning institution either locally or abroad. This withdrawal
can be used to pursue one of the following programs
namely; Diploma, Advance Diploma, Bachelor Degree, Post
Graduate Diploma, Masters Degree, Phd or any of the
equivalents; or
Terms & conditions
You are qualified to apply for this scheme if you or your
children do not receive any full scholarship from any
organizations.
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HEALTH WITHDRAWAL SCHEME
• HEALTH WITHDRAWAL SCHEME
• This scheme allows EPF members to withdraw their
savings from Account III to meet the medical
expenses for the treatment of critical illnesses for
themselves and their family approved by the EPF.
EPF members can cover the following family
members under this scheme :
– Member's spouse
– Member's children/step-children/legally adopted
children
– Member's parents/parents-in-law/step-parents
– Member's siblings
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HEALTH WITHDRAWAL SCHEME…..
• Withdrawal Eligibility
Members can apply for withdrawal under
this scheme on the following conditions :
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HEALTH WITHDRAWAL SCHEME…..
(A)Members or their family stated above are suffering from critical
illness approved by the EPF Board as follows :
– Major organ transplant
– Coronary bypass surgery
– Heart Valve Replacement
– Surgery to aorta
– Multiple sclerosis
– Stroke
– Meningitis and encephalitis
– Coma
– Cancer and benign brain tumor
– Serious accident injuries
– Congenital heart disease
– Congestive heart failure
– Chronic renal failure including haemodialysis
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HEALTH WITHDRAWAL SCHEME…..
• Other critical illnesses that are not listed above can
be referred to the EPF for consideration.
(B) Members or their family wish to cover the cost of
purchasing medical aid or supply of prosthetic body parts
such as wheelchair, prosthetic leg and other supplies
approved by the EPF Board.
(C) Members can also make joint withdrawal with other
family members stated above to cover the medical
expenses (subject to the total cost of medical treatment).
(D) For joint withdrawal, the EPF will firstly process
application from the first applicant and followed by
application from other members (subject to the total cost
of medical treatment).
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HEALTH WITHDRAWAL SCHEME…..
• Members are not eligible to apply under this
withdrawal scheme if :
– The cost of medical treatment is fully sponsored
by members' employer.
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HEALTH WITHDRAWAL SCHEME…..
• Amount Eligible For Withdrawal
• Members can withdraw their savings as follows,
whichever is lower :
• All savings in Account III
OR
Actual cost of medical treatment.
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HEALTH WITHDRAWAL SCHEME…..
• If the cost of treatment is partially sponsored by
members' employer, the amount of savings that can
be withdrawn is as follows, whichever is lower :
All savings in Account III
OR
The cost of medical treatment which is not
sponsored by the employer.
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HEALTH WITHDRAWAL SCHEME…..
• For joint applications, the amount of savings that
can be withdrawn is as follows, whichever is lower :
Total savings in Account III for all applicants
OR
The actual cost of medical treatment.
• If members' savings in Account III is not sufficient to
cover the cost of medical treatment, members can
apply to withdraw their savings in Account II to meet
the medical expenses needed.
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INCAPACITATION WITHDRAWAL
SCHEME
This scheme enables EPF members to withdraw all
their savings if they become physically or mentally
incapacitated to continue to work to lessen the
burden of members concerned.
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INCAPACITATION WITHDRAWAL SCHEME…..
TERMS AND CONDITIONS
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Withdrawal Eligibility
Members are no longer employed at the time
application is made.
Members are confirmed to become physically or
mentally incapacitated to work by the doctor who
examined them.
Members are medically boarded out by their
employer.
Members are medically boarded out and they receive
Invalidity Pension Scheme from SOCSO.
However, members are not eligible to apply if :
– Members have reached the age of 55 years and above.
Members are advised to apply withdrawal under Age 55
Years, Periodical Payment or Annual Dividend Withdrawal
Scheme.
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INCAPACITATION WITHDRAWAL SCHEME…..
HOW TO APPLY
• Medical report
• Relevant documents (ic/resignation termination
letter/passport/saving account book)
INCAPACITATION BENEFITS (RM5,000 for once)
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DEATH WITHDRAWAL SCHEME
• This scheme allows members'
nominees/executor/administrator/nearest next-of-kin
to withdraw the members' EPF savings in the event
of members' death.
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DEATH WITHDRAWAL SCHEME…..
• TERMS AND CONDITIONS
Withdrawal Eligibility
Claimants can withdraw the deceased member's
savings under this scheme if :
– The claimant is the person nominated by the deceased
member to receive his/her savings; or
– If the deceased member did not nominate any beneficiary,
the claimant is the executor appointed/the member's
nearest next-of-kin.
– If the deceased member did not make any nomination, the
following has the right to claim the member's savings
(according to priority) :
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DEATH WITHDRAWAL SCHEME…..
If the deceased member did not make any
nomination, the following has the right to claim
the member's savings (according to priority) :
– If the deceased member is married :
• Administrator/executor appointed
• Member's spouse
• Member's children or their guardians
• Member's parents
• Member's siblings
• Anyone who is deemed acceptable by the EPF has the
right to receive the member's savings.
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DEATH WITHDRAWAL SCHEME…..
• If the deceased member is single :
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Administrator/executor appointed
Member's parents
Member's siblings
Anyone who is deemed acceptable by the EPF
has the right to receive the member's savings.
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DEATH WITHDRAWAL SCHEME…..
How To Apply
- EPF Savings With Nomination
Has reached age of 18
– EPF Savings Without Nomination
The member's nearest next-of-kin such as
widow/widower, children, parents and siblings
can apply to withdraw the member's savings.
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DEATH WITHDRAWAL SCHEME…..
• PAYMENT OF WITHDRAWAL
– For members who have made nomination, lump
sum payment of members' entire savings will be
paid to the nominee/nominees.
– For members who did not make any nomination,
payment will be made to the members' next-ofkin/dependent who, in the opinion of the EPF, is
beneficially entitled to receive the estate of the
deceased member, subject to the amount of
members' savings as follows :
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DEATH WITHDRAWAL SCHEME…..
– RM2,500.00 and below
• Full amount will be paid to the member's nextof-kin immediately after application is received.
– RM20,00.00 and below
• First payment amounting to RM2,500.00 is
made immediately after application is received.
• The balance is processed after two months
from the date of member's death.
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DEATH WITHDRAWAL SCHEME…..
– Exceeds RM20,000.00
• First payment amounting to RM2,500.00 is
made immediately after application is received.
• Second payment (not exceeding RM17,500.00)
is processed after two months from the date of
member's death.
• The balance is paid upon producing the Letter
of Administration/Grant of Probate/Distribution
Order.
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DEATH WITHDRAWAL SCHEME…..
• However, if the Letter of Administration/Grant of
Probate/Distribution Order is presented at the point
of withdrawal application, payment will be made to
the persons/administrators concerned accordingly.
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DEATH BENEFIT
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The dependent of a deceased member is entitle to
receive the Death Benefit if the deceased member
has not reached 55 years of age at the time
withdrawal application is received by the EPF. The
Death Benefit will be paid to one of the following
dependents of the member :
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Member's widow or widower; or
Member's children; or
Member's parents.
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DEATH BENEFIT…..
• To enable this Death Benefit to be paid, applicants
are required to complete Form KWSP 21 together
with the original document and photocopy of the
following documents :
– Applicant's Identification Card; and
– Proof of relationship between the applicant and
the deceased member such as Marriage
Certificate and Birth Certificate.
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OFFENCES & PENALTIES
• Fraud in withdrawal to buy/build house :
• General – Section 60 EPF Act 1991
– RM2,000/
– imprisoned up to 6 months/both
• Fraudulent :
– RM10,000/
– imprisoned up to 3 years/
– both
• General penalty :
• General – Section 60 EPF Act 1991
– fine RM2,000 &
– imprisonment n.e. 6 months or
– both
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OFFENCES & PENALTIES
• Fail to register with Board :
• Section 41 (1) EPF Act 1991
– RM10,000 –
– n.e. 3 yrs –
– both
• Fails to pay contribution within such period : pay accrued dividend:
• Section 43 (2) EPF Act 1991
– RM10,000 –
– n.e. 3 yrs –
– both
• Deduct the wages : not pay to EPF
• Section 48 (3) EPF Act 1991
– imprisonment 6 yrs –
– RM20,000 –
– both.
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