What is Employment Provident Fund (EPF)?

Employees Provident Fund is a compulsory savings scheme in Malaysia. Its primary aim is to
provide a measure oI security Ior old age retirement to its members. It also provides
supplementary beneIits to members to utilize part oI their savings Ior house ownership and other
withdrawal schemes.
EPF is the abbreviation Ior Employees Provident Fund. Employees Provident Fund is commonly
known in the Malay term as KWSP or Kumpulan Wang Simpanan Pekerja.
Employees Provident Fund Act 1991 is the act governing the Employees Provident Fund in
Malaysia. This Act is administered by the Employees Provident Fund, Malaysia.

1.EPF CONTRIBUTION

What is Contribution?

A contribution is the amount oI money paid to the EPF which is calculated based on the
monthly wages oI an employee, and then credited into the employee's EPF account. The EPF
contributions Ior each employee are made up oI the employee's and employer's portions.

The employee's share is deducted Irom the employee's wages and contributed to the EPF. The
employer's share is the amount oI money contributed by the employer to match the employee's
share oI contribution Ior the employee's retirement beneIit.
EPF contributions can be paid in cash, by postal order, bank draIt or any other means approved
by the Board. They must be paid to the nearest ringgit at the rate speciIied in the Third Schedule
oI the EPF Act 1991.

Contribution Rates

The rate oI contribution is a percentage oI the employee's monthly wages that must be paid as
EPF contribution. Each employee is required to contribute 11 percent oI his/his monthly
income, and this is added by the employer's contribution oI 12 percent. The rates oI employee's
and employer's share oI contribution are subject to changes set by the Government. In order to
Iacilitate the payment oI contributions, the amounts payable are provided in the Third Schedule
oI the EPF Act 1991.

oI the contributions oI the employees` wages
Employer Employee
All except the expatriates and the
Ioreign workers
12 11
Expatriates and Ioreign workers
(except those that have been
excluded)
RM5 per
person
11

Both the employee and employer, or either oI them, may also opt to contribute at rates higher
that what is required.

owever, according to the RMK11, the contribution Irom employer is increased to
13 percent which makes up 24 percent per month compared to only 23 percent per month Ior
last time.
Payments Liable For EPF Contribution
Generally, all remuneration due to an employee is wages and shall be subject to the EPF
contributions. Examples oI such payments include:
Salary;
Payment Ior unutilised leave;
Bonuses;
Allowances;
Commissions;
Arrears oI wages;
Wages Ior maternity leave;
Wages Ior study leave;
Wages Ior halI day leave; and
Director's salary (as an employee).

Payments Not Liable For EPF Contribution
The payments below are not regarded as wages and not subject to the EPF contributions:
Service charges;
Overtime payment;
Gratuity;
Directors' Iee;
Retirement beneIits;
Payment in lieu oI notice oI termination oI employment;
Retrenchment, temporary and lay-oII termination beneIits; and
Any travelling allowance or the value oI any travelling concession.

What is the procedure that is required to register an employee with EPF?

Under Malaysian Law, employers are required to register their employees with the EPF within 7
days oI the employment. According to section 41(2) oI the EPF Act 1991, an employer that
contravenes the required procedure will then be Iound guilty oI the oIIence and shall be liable,
on conviction to either imprisonment Ior e term that does not exceed that oI 3 years or a Iine that
does not exceed RM10, 000 or to both. BeIore the employers register their employees they must
Iirst register their Iirm or the company with the EPF by submitting the KWSP 1 Iorm which can
be obtained at any oI the nearest EPF branch oIIice.
AIter that Ior each oI the employee, the employer along with the employee will be required to
complete the KWSP 3 (AL) Form. Usually, an employee will also be required to submit the
Nomination Form KWSP 4 (AL) which will then be attached together with the KWSP 3
(AL) Form. Once the application has been approved, the employee will then be sent a
Membership Card and the EPF contribution by both the employee and employer will commence
on the Iirst month with the salary payment pursuant to section 45(2) oI the EPF Act 1991.
When should the employer pay the contribution to the EPF?
The employer is required to contribute to the Employees Provident Fund beIore the Iirst week in
the Iirst month where the employer will prepare as well as Iurnish a statement oI wages to each
oI the employees. Any employer that Iails to make the contribution to the EPF and iI Iound guilt
oI the oIIense will then be liable on conviction to imprisonment Ior a term that will not exceed 3
years or to a Iine that does not exceed the amount oI RM10, 000 or to both.
If a member dies, then what will happen to the EPF monies?
According to the Death Withdrawal Scheme, the beneIiciary will be one that was registered by
the deceased as their heir or in the event that the deceased did not name a beneIiciary, then the
person that is deemed to be acceptable by EPF will have the right to apply Ior the deceased
savings. This means that the beneIiciary or the next-oI-kin will be allowed to withdraw the
deceased entire savings.
II that particular member dies beIore they reach the age pI 60 years oI age, the member`s
dependant will then be paid the Death BeneIits. The nominees oI the member will then be
entitled to the monies upon the death oI the member irrespective oI whether there is a will or
not. owever, you should take note that the nominations that were made beIore marriage will be
automatically canceled and Iresh nominations must be made anew.
II a particular member dies without naming a beneIiciary, then the Iollowing person will have
the right to with their savings and this includes; iI the deceased is single then it will include the
parents oI the deceased, anyone else that is deemed by the EPF to be qualiIied to receive the
monies, the inheritance administrator, and the siblings oI the deceased. owever iI the deceased
is married then the people that will be allowed to withdraw the savings include; the parents oI
the deceased, anyone else that is deemed by the EPF to be qualiIied to receive the monies, the
inheritance administrator, the siblings oI the deceased, the spouse oI the deceased and the
children oI the deceased or their guardians iI they are not oI age yet.
There three types oI payments made by EPF iI the deceased had not named a beneIiciary. II the
total savings oI the deceased is not more than RM20, 000 and a Probation Letter, a
Administrative Letter or a Distributing Command was not submitted within 2 months Irom the
date oI the death, then the EPF will have the right to relay the monies to the parties in which the
EPF deems qualiIied to receive the interest Irom the deceased or to relay the monies to the
parties whom the EPF deems qualiIied to hold such letters.
II the total savings oI the deceased is between the amount oI RM20, 000 and RM 30, 000, then
EPF will not be able to pay more than 50 oI the total savings to the category oI people that
were mentioned. II the total savings oI the deceased is more than RM30, 000 then EPF will only
be able to pay 25 oI that particular persons total savings or the RM30, 000, whichever is lower
to the qualiIied person.
II the member is a Muslim and they have named a beneIiciary, then that particular beneIiciary
will only act as an executor or a 'wasi. This person upon the death oI the member will be
responsible Ior the distribution oI the savings oI the deceased in accordance with Faraid
(inheritance) laws to the legal heirs. The nominees can make their claims Irom the Employee
Provident Fund by completing the KWSP 9 (KM) Iorm.
For the named beneIiciary who has not reached the legal age oI 18 years old yet, they would
then need to complete the additional KWSP 22 Iorm while Ior the applicants who are the legal
heir to the named beneIiciary but has passed away beIore the deceased member, then the naming
oI the new beneIiciary are required to submit the KWSP 10A Irom in addition with the KWSP 9
(KM) Iorm.
So to avoid all this inconvenience it is best advisable that you name the beneIiciary, so that your
loved ones or the next-oI-kin do not need to go through all that trouble.
. Accounts in EPF savings

What are the requirements to withdraw partial contributions from EPF?

A member`s account is divided and maintained in 3 separate sub-accounts Ior the purpose oI
withdrawal Irom the EPF.
The oI the
contributions
Account I For retirement
purposes at the age oI
55
60
Account II For housing,
education, the
purchase oI
computers and other
Iorm oI withdrawals
at the age oI 50
30
Account III For health and other
medical reasons
10
Members should take note that some oI the conditions must be IulIilled beIore the EPF savings
can be withdrawn. There is also the pre-retirement savings where a member can withdraw their
entire savings Irom the Account II at the age oI 50 by completing and submitting the KWSP 9B
(AL) Iorm.
As Ior the Account III, withdrawal can only be made to meet the medical costs and the
particular member can withdraw all their contributions Ior the cost oI the medical treatment in
Account III; however it will be subjected to the approval by the medical board. The Medical
Withdrawal Scheme can be used not only Ior the members themselves but it can also be used to
cover the spouses, the siblings, children (iI any), as well as the parents. You can also obtain the
list oI the critical illnesses that can be qualiIied Ior withdrawal Irom any oI the EPF oIIice and to
apply Ior the withdrawals a member must complete and submit the KWSP 9D (AL) Iorm.
Members are also able to withdraw their savings Irom EPF in the Account II under the
Educational Withdrawal Scheme, so that they can pay Ior the Iees oI the education either Ior
themselves or Ior their children to Iurther their studies either in a local institution or abroad.
They can also withdraw their savings Ior the purchase oI a personal computer either Ior
themselves or Ior their children under the Computer Withdrawal Scheme; however under this
particular scheme there are certain conditions that the members must adhere to.
As Ior the EPF members who are still serving the public sector and are eligible Ior pensions,
they will be allowed to withdraw the employee`s share oI the contribution that will be exclusive
oI the dividends. Those that wish to apply Ior withdrawal oI the savings must Iirst submit the
KWSP 9J (AL) along with a certiIied copy oI their Identity Card, they would also need a
conIirmation letter regarding oI the service period (JPA/PEN228/11/5-6) Irom the ead oI
Department as well as Appendix A and A-1.
For the members with more than RM55, 000 in the Account I, they will be allowed to invest a
portion oI their savings under the Members` Investment Scheme in Iund management
companies that have been approved by the Ministry oI Finance. And Iinally there is also the
Annuity Scheme that will allow its members to withdraw Irom their EPF accounts to purchase
an annuity plane Irom insurance companies that will provide their members a guaranteed regular
income Irom the age oI 55 to the rest oI their lives.
Am I eligible to withdraw under the education withdrawal scheme?
As a member oI the EPF you will be entitled to withdraw money Irom your savings to pursue
your studies at the diploma level. II it is withdrawal Ior your children`s education then it can be
used Ior either their degree or postgraduate degree courses. The amount that is qualiIied Ior the
withdrawal is either the total amount oI contributions in the Account II or the maximum amount
oI the total Iees, whichever one is lower. The withdrawal Irom the Iunds can be made in each oI
the academic year but it will be subjected to the availability oI the Iunds in the Account II. EPF
will then make payment in any oI the 3 modes and they include the direct payment to the
Iinancial institutions to settle or to reduce the balance oI the study loans that you have taken up.
This will be under the speciIic conditions that you or you child are currently studying in the
institutions oI higher learning that will include the study loans under either your name or both
you and the child`s name. EPF could also make the direct payment to the institution that you are
currently studying in or they could make the payment to you or you child that are pursuing the
studies abroad or any oI the payment made to you that is subjected to the terms and conditions.
You will then be required to check the balance leIt in your EPF Account II beIore you make any
application Ior withdrawal and then you must obtain a letter Irom the EPF on the amount that
will be allowed to be withdrawn. The Iollowing documents must be submitted in order Ior them
to obtain the letter Irom EPF and they include a certiIied copy oI the applicant`s identity card
and a letter oI acceptance Irom the college or the university that states that you will be pursuing
your studies at the diploma level and above. II it is your children who will be pursuing their Iirst
year oI studies at the degree level and above, as Ior the subsequent years a letter oI registration
will be required. For this particular scheme you can apply Ior it by submitting the KWSP 9
(AL) Iorm along with the other relevant inIormation to support your application to the nearest
EPF oIIice.
Am I eligible to withdraw under the computer withdrawal scheme?
Members oI EPF will be able to withdraw up to the amount oI RM3, 500 or subject to the
balance that remains in the Account II, whichever is lower according to the Computer
Withdrawal Scheme. As Ior the joint application, members will only be allowed to withdraw up
to the amount oI RM3, 500 only or subject to the balance in the Account II, whichever one is
lower, you will also need to be aware that Ior the joint application, an application will be
required to be submitted together. And iI you have previously withdrawn under this scheme you
will not be eligible to withdraw again as you will only be permitted to withdraw once. You will
be required to submit the KWSP 9K (AL) Iorm to the appointed dealers iI you wish to apply
Ior this type oI withdrawal, the dealers Ior example include Bank Simpanan Nasioanl or Pos
Malaysia Berhad. You will also be required to submit other relevant documents along with your
application and your computer will be delivered to you once your application has been
approved.
Under the Member`s Investment Scheme, how much will I be able to withdraw?
For the members with more than RM55, 000 in their Account I, they will be able to invest up to
about 20 oI the excess amount in any oI the approved unit trust Iunds under the Member`s
Investment Scheme. Members will be able to invest a minimum oI RM1, 000 Irom their savings.
You can use the Iormula that will be provided to calculate the amount you will be able to
withdraw, which goes like this;
(Balance in Account I the amount above RM55, 000 in Account I) X 20
Three months aIter the Iirst withdrawal you will then be allowed to withdraw Irom your savings
a second time to invest in the Investment Scheme. owever you need to be aware that Ior any oI
the withdrawal the Account I must have a minimum oI RM55, OOO beIore you can make the
withdrawal. Another thing that you need to take note oI is that you can only invest your savings
in the unit trusts Iunds that has been approved by the Ministry oI Finance. EPF will not take any
responsibility Ior the investments that you make, so it is advisable that you do thorough research
on the particular unit trust Iunds beIore you actually make an investment in them. For the
investment purposes you will need to obtain the Statement oI Account as well as complete and
submit the KAWP (AL) Iorm beIore you can make the withdrawal.
Currently there are 33 approved Fund Managers that you can choose Irom and they include;
Kuala Lumpur Mutual Fund Bhd, Rashid ussain Asset Managemtn Sdn Bhd, LG Asset
Management Ssn Bhd, Jardine Fleming Apex Unit Trust Bhd, Arab-Malaysia Unit Trust Bhd,
Bumiputrs Merchant Bankers Bhd, Commerce-BT Unit Trust Management Bhd, OSK-UOB
Unit Trsut Management Bhd, Mayban Management Bhd, Amanah Merchant Bank Bhd, BLB
Asset Management Bhd, TA Unit Trust Management Bhd, AMMB Asset Management Sdn
Bhd, PaciIic Mutual Fund Bhd, RB Unit Trust Management, Mayban UBS Asset Management
Sdn Bhd, Perdana Merchant Bank Bhd, Amanah Saham Nasional Berhad ASN 2, Utama
SSSB Unit Trust Management Bhd, AIIin Fund Management Sdn Bhd, BBMB Unit Trust
Management Bhd, BLB PaciIic Trust Management Sdn Bhd, ASM Mara Unit Trust
Management Bhd, MIMB Aberdeen Asset Management Sdn Bhd, Amanah Saham Sarawak,
Permodalan BSN Bhd, Asia Unit Trust Bhd, Philip Capital Management Sdn Bhd, SBB Asset
Management Sdn Bhd, Lembaga Tabung aji, SBB Unit Trust Management Bhd and MBF Unit
Trust Management Bhd.
ow does the Annuity Scheme work?
The Annuity Scheme is eligible Ior those that are not considered as the public sector
pensionable employees and the scheme itselI is to help the members manage their post-
retirement Iund. The scheme will basically provide you with a guaranteed regular pension
income Ior liIe starting at the age oI 55 years old Ior each oI the applicant. For this particular
scheme you will be allowed to withdraw Irom all three oI your EPF Account (I, II and III) to
purchase the annuity plan, however you should take note that you can only do so Irom the
Insurance companies that has been approved by the Ministry oI Finance. Currently EPF is
oIIering 2 types oI annuity schemes Ior its member to purchase and they include; the TakaIul
Annuity Scheme and the Conventional Annuity Scheme. There are two products that can be
Iound in both oI the schemes; the Iirst product is known as the deIerred annuity where you will
then be able to purchase the annuity policy beIore you reach the retirement age oI 55. AIter that
you will receive a monthly income as you as you reach the age oI 55 years old and under the
TakaIul Scheme you will receive the monthly payment until you reach the age oI 100 years old.
The second type oI product is called the immediate annuity where members will be able to
purchase the annuity policy between the ages oI 55 and 70. In this case the monthly pension will
commence 1 month aIter the date you have purchased this scheme and under the TakaIul
Scheme you will be able to receive the monthly payments until the age oI 100 years oI age.
The premium rates Ior both the products that were mentioned will depend on your gender as
well as your age. The annuity scheme is purchase on a unit basis, so Ior example 1 unit that you
have purchased will basically provide you with a guaranteed minimum monthly income oI
RM100 per month Ior the rest oI your liIe while under the TakaIul Scheme there is no such
guarantee. You will also be allowed to purchase as many oI the annuity units as you like in
order to meet the type oI retirement that you like and there are also no requirements Ior medical
examinations. You can make payment oI the premium to the insurance companies once every 3
months Ior the Iirst type oI product while the one-oII single will apply Ior the second type.
In the unIortunate event that the annuity policy holder dies beIore they reach the age oI 55 years
old, then it is the beneIiciaries who will receive the monthly payment Ior a guaranteed term oI
10 years starting Irom the year that the member passes away. AIter the 10 year period the policy
will be considered to be null and void.
In the event oI death beIore the age oI 55, the annuity policy holder`s beneIiciaries will receive
the monthly payments Ior a guaranteed 10 years starting Irom the year the member dies. The
policy will be null and void aIter the 10 years period. This goes Ior the TakaIul Scheme as well
where the beneIiciaries will receive the yearly annuity payments Ior the next 10 years. II the
circumstance arises where the policy holder dies aIter the age oI 55 years old, then their
beneIiciaries will receive the monthly payments Ior the balance oI the guaranteed 10 years.
owever iI the policy holder passes away aIter the age oI 65 then annuity will be paid to the
beneIiciaries.
II the policy holder sustains total and permanent disability due to an unIortunate event then the
member will receive the monthly payments Ior the rest oI their liIe or until death occurs. While
in such cases the beneIiciaries will receive the payments Ior the balance Ior the balance oI the
guaranteed 10 years. The Annuity Scheme is relatively easy to purchase and all the applicants
will be automatically accepted. Applicants will be required to complete and submit the KWSP
9G (AL) Iorm and also enclose the statement that shows the number oI annuity units that you
will be eligible to purchase.
All the applicants will then be given a 'Cooling oII Period oI 15 days; this is where the
applicants will be able to cancel the policy without incurring any Iorm oI penalty. owever iI
you do decide to surrender the policy aIter the period has lapsed then a service charge will be
levied. AIter that the total bonus and the premium that has been deducted the service charge will
be returned to you. You should also take note that the 'Cooling oII Periods does not apply Ior
the TakaIul Scheme.

What are the terms and conditions for the withdrawal under the ousing Withdrawal
Scheme?
Members can withdraw a total oI 30 Irom Account II Ior the intention oI purchasing or
constructing oI a residential house, commercial shop lots or even to reduce the mortgage oI such
purchases. Members will be able to withdraw a diIIerence between that oI the price oI the house
and the loan along with the additional 10 oI the price oI that particular property or all the
savings in Account II, whichever one is lower.
The Iormula to calculate is as Iollows;
(Cost oI the house The loan amount) 10 oI the cost oI the house
For the members who wish to withdraw money Irom their savings under this particular scheme,
they will then need to complete and submit the KWSP 9C (AL) Iorm. You will also be
required to submit other relevant documentation to support you in the process oI making
withdrawals under this scheme. You need to be aware that the withdrawal Ior the purchase oI a
house must be made within 2 years Irom the date that you have signed the Sale and Purchase
Agreement.
Another thing that you will need to be aware oI is that with eIIect Irom 2 nd oI January oI 2001,
no withdrawal can be made Ior the purchase oI a second house unless the Iirst house, which was
Iunded by the EPF savings, is being sold.
II you wish to purchase a second house subject to the condition that was mentioned earlier, then
the members will be required to submit documentation to prove the sale oI that particular
property and this will include; the Memorandum oI TransIer (KTN 14A), the Loan Agreement
Cum Assignment, the Title Deed under the name oI the member and the Deed oI the
Assignment. Members will then be able to make Iurther withdrawals once every 3 years Irom
their Account II to service the loan Ior the existing house iI the purchase oI the second house or
commercial shop lots were made beIore the 2 nd oI January 2001, the outstanding balance oI the
loan used to purchase the house or the commercial shop lots as well as the mortgage itselI is
Irom the Iirst mortgage and the member has not reached the age oI 55 years old during the
approval oI the application.
You will also not be allowed to withdraw the money Irom your savings Ior the purpose oI
renovating your house, repair the existing property that you, or to collateral the house so that
you will be able to acquire the Iinance Ior the purpose oI other than to build a house or to
purchase one. II you are withdrawing Ior the purpose oI servicing your house loan, then you will
be able to withdraw all your savings Irom Account II or the balance Irom the housing loan,
whichever is lower. II it is under a joint application, then both the parties will be able to
withdraw all their savings Irom their Account II or the balance Irom the housing loan,
whichever one is lower. owever you need to be aware that EPF will Iirst process the
application beIore allowing the withdrawal Irom both the party`s account. This means that EPF
will process the application Irom buyer 1 and only when they have Iound that the savings is not
enough, and then EPF will process the application Ior buyer 2.
. Nomination
ow is a beneficiary nominated?
Only members who are above the age oI 18 years will be able to nominate any person or persons
to become their beneIiciary. For them to do so they must Iirst complete and submit the KWSP 4
(AL) Irom Ior the record oI EPF. During the naming oI the beneIiciary, a witness will be
required; however the witness cannot be the beneIiciary. II Ior any reason you would want to
change the nominee or the nominees, then you would need to complete and submit a new
KWSP 4 (AL) Iorm, and this will automatically replace your previous nomination. So in the
unIortunate event that the member has passed away, then immediate payment will be made to
the named beneIiciary.
Under what type of circumstances can a member withdraw the entire EPF contributions?
The Iull amount oI the contributions can be withdrawn by the EPF members iI; the member has
passed away where the withdrawal shall be made by the beneIiciaries, Ior the expatriate and
Ioreign workers who have already contributed but are excluded, on attaining the age oI 55 years
old, iI that particular member is prevented Irom engaging in any Iurther employment by reasons
such as mental or physical incapacitation or the members have chosen to leave Malaysia
permanently.
II the member chooses to withdraw all their savings on reaching the age oI 5 years old, the
application can be made by completing and submitting the KWSP 9B (AL) Iorm and
enclosing it with a copy oI the applicants identity card. There are three types oI options Ior the
withdrawal under the Retirement Withdrawal Scheme and they include the periodical payment
withdrawal scheme, the annuity scheme, a lump sum withdrawal, and an annual dividend
withdrawal scheme.
II the particular member is an expatriate or have already canceled their citizenship oI Malaysia
and is planning on leaving Malaysia with no intention oI returning, then that member will be
allowed to withdraw their entire savings. They will be required to proceed to the nearest EPF
oIIice and submit both the KWSP 9 (DN) and the KWSP 9B (AL) Iorm.
II a member is unable to work due to them experiencing mental or physical disability then they
will be allowed to withdraw their entire savings Irom EPF. They would then be required to
make the applications under the Mental or Physical Incapacitation Withdrawal Scheme. Not
only that but iI a particular member withdraws their savings beIore they each the age oI 60 years
old using the scheme that was mentioned earlier, the members will also receive Disability
BeneIits. For a member to withdraw the savings Irom the Physical or Mental Incapacitation
Withdrawal Scheme, they must then complete and submit the KWSP 9B (AL) Iorm along with
a copy oI their identity card as well as a medical report proving their disability. In the medical
report it must contain inIormation such as the present state oI health and the accident or the
illness that had caused the disability. Other things that you will need to take note oI is that the
medical report that you have obtained Irom a clinic or a private hospital must not be more than 6
months oI the issuing date while the reports obtained Irom a Government or University ospital
must not be more than 1 year old. II there is a letter oI resignation stating the cause oI the
resignation or retrenchment by the employer, make sure that you enclose it with all the other
relevant inIormation. owever, iI such letter in not available then the member may submit a
Statutory Declaration that is made beIore a Magistrate that states the Iollowing inIormation and
they include; the date oI the resignation, the reasons behind the resignation, the name oI the last
employer and the position that you last held. The member will then be reIerred to a panel oI
doctors on the behalI oI the EPF Ior check up where the approval oI the application will depend
on the decision made by the panel oI doctors. II the member chooses they can also obtain the
approval Irom a Medical Practitioner in any oI the Government ospitals located in Malaysia.

. Investment

Member's Investment Withdrawal Eligibility

EIIective 1 November 2007, EPF under its Beyond Savings strategic initiative has introduced
various enhancements to member`s beneIit structure in stages. These enhancements are in
accordance to the EPF Act 1991 (Amendment 2007) . One oI the enhancements is the
introduction oI the basic savings concept that will be used to determine the minimum sum a
member is allowed to withdraw Irom Account 1 Ior Investment Withdrawal.
Definition of Basic Savings
Basic Savings is an amount to be put aside in Account 1 progressively at various pre-
determined age levels to enable a member to accumulate a minimum savings oI RM120,000 at
age 55.

A member needs to have a basic savings amount at the predetermined age levels. Amount in
excess oI the basic savings can be invested in products oIIered by external Iund managers
approved by the Ministry oI Finance.
Conditions For Investment Withdrawal
O EIIective 1 February 2008, members can invest not more than 20 oI their credit in
excess oI Basic Savings in Account 1 in products through approved external Iund
managers.
O The minimum amount oI savings that can be withdrawn is RM 1,000 and can be made at
intervals oI three months Irom the date oI the last transIer, subject to the availability oI
the Basic Savings required in Account 1.
O There are no other changes in conditions Ior the Member`s Investment Withdrawal.
O Please reIer to the Appendix Ior the Basic Savings Table and examples oI allowable
withdrawal Ior the Member`s Investment Withdrawal.






Required Basic Savings In Account 1
Age
(Years)
Basic Savings
(RM)
Age
(Years)
Basic Saving
(RM)
18 1,000 37 34,000
19 2,000 38 37,000
20 3,000 39 41,000
21 4,000 40 44,000
22 5,000 41 48,000
23 7,000 42 51,000
24 8,000 43 55,000
25 9,000 44 59,000
26 11,000 45 64,000
27 12,000 46 68,000
28 14,000 47 73,000
29 16,000 48 78,000
30 18,000 49 84,000
31 20,000 50 90,000
32 22,000 51 96,000
33 24,000 52 102,000
34 26,000 53 109,000
35 29,000 54 116,000
36 32,000 55 120,000

Some Examples To Compute The Allowable Investment Amount
Member Age Savings
In
Account
1
(RM)
Basic
Savings
(RM)
Computation:
Savings In
Account 1- Basic
Savings x
Member's
Eligibility
A 22 4,000 5,000 - Not qualiIied as
the savings is
lesser than the
basic savings
required.
B 22 8,000 5,000 (8,000 - 5,000) x
20 RM600
Not qualiIied as
the savings is
lesser than
required
minimum
investment
amount oI RM
1,000.
C 25 20,000 9,000 (20,000 - 9,000) x QualiIied as the
20 RM2,200 savings is more
than the basic
savings and
minimum limit.
D 40 40,000 44,000 - Not qualiIied as
the savings is
lesser than the
basic savings
required.
E 45 100,000 64,000 (100,000 -
64,000) x 20
RM7,200
QualiIied as the
savings is more
than the basic
savings and
minimum limit.

Enquiry
It is important Ior you to Iurnish your Iull current address in EPF Forms when submitting your
applications. Should there be any change to the given address aIter you made your submission,
you must notiIy the nearest EPF oIIice immediately. Again, this would avoid unnecessary
delays in processing your application.
II you have any enquiries or require Iurther inIormation about investment withdrawals, please
contact:
O Nearest EPF oIIice
O EPF Call Management Centre
Please quote your EPF number or your IdentiIication Card number and the type oI withdrawal
that you have applied Ior when you contact the EPF. You may also visit EPF`s website to obtain
Iurther inIormation about EPF withdrawals.