EPF Announced 2 Categories Of Members Qualified For Withdrawal – Here’s How Much You Can Withdraw

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Dec 02 2020
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Employees’ Provident Fund (EPF) has just announced the criteria or terms and conditions with regard to the withdrawal of retirement savings under “i-Sinar” scheme. A whopping 8 million members are eligible to apply online beginning 21 Dec, 2020. According to EPF (KWSP, Kumpulan Wang Simpanan Pekerja), the eligibility criteria can be divided into 2 categories.



The first category comprises workers in the formal sector, self-employed workers and workers in the gig economy, those who have not contributed to the EPF for a period of time, as well as those who have lost their jobs, housewives, or given no pay leave. To qualify, the criteria are pretty simple.

  1. EPF members who have not contributed to the EPF for at least two (2) consecutive months at the time of application. This essentially includes workers or employees who had been jobless or retrenched for months – even years – before the Coronavirus outbreak. This group of people may not be able to find jobs, but at the same time have not reached the retirement age.


  1. EPF members who are still working but have suffered a reduction of their “base salary” by 30% and above from March 2020. For example, if a worker’s basic salary (excluding other allowances or overtime) was RM3,000 per month and had suffered RM900 pay cut, resulting in RM2,100 take-home salary from March.

EPF KWSP Retirement Savings - Kiosk

EPF contributors who fall under this category do not need to submit any supporting documents as approval is “automatic” based on the EPF’s internal data and information. Qualified and interested workers just need to apply online on this link – isinar.kwsp.gov.my – from 21 Dec, 2020 onwards (the link shows “under construction” for the time being).



The second category consists of members who are still employed but whose “total income” (defined as base salary and other benefits such as allowances and overtime) has been reduced by 30% and above from 1 March, 2020 onwards, of which the reductions can only be verified with supporting documents. Note that this is different from Category-1’s “base salary”.


For example, if an employee’s total salary was RM3,000 (basic pay of RM2,500 with RM200 transport allowance and RM300 overtime) but lost both transport allowance and overtime income in addition to a basic pay cut of RM400. In this case, the worker’s total income per month had been reduced by 30% (or RM900), resulting in only RM2,100 monthly income.

EPF KWSP - Retirement Savings Scheme - Building

For the second category, applicants must submit documents to EPF for verification and approval – included salary slips (before and after the income reduction) and employer’s notice of suspension or reduction of allowances and/or overtime claims. But what if such documents are unavailable?


EPF says members who are not able to provide the supporting documents as required, other relevant supporting documents such as bank statement or employer’s written acknowledgement will be considered. Unlike those qualified in the first category, members in this category can only start applying online beginning 11 Jan, 2021 using the same link – isinar.kwsp.gov.my.


Upon submission, members can check the status of their applications about two to three weeks thereafter. Payment will be done before the end of the following month, after the application is approved. Exactly how much can EPF contributors withdraw is subject to the member’s Account 1 balance, based on the latest information as below:

EPF - KWSP - Employees Provident Fund

Members with RM100,000 and below in Account 1 – can withdraw any amount up to RM10,000. However, payments will be staggered over a maximum period of six (6) months with the first payment of up to RM5,000. Members are required to leave a remaining balance of at least RM100 in this account.


For example, if a member has only RM4,500 in Account 1, the first payment will be RM4,400 (because the account must have at least RM100 in balance). If a member has RM10,000 in Account 1, the first payment will be RM5,000, while the remaining RM4,900 will be staggered over 6 months (RM816.67 per month). In both cases, the account will be left with only RM100 after the withdrawal.


On the other hand, if an EPF member has RM100,000 in Account 1, the first payment will be RM5,000. The remaining RM5,000 will be spread over 6 months, hence the member will be receiving RM833.33 per month. For members whose retirement savings have more than RM100,000, the eligible amount is different.

EPF KWSP Retirement Savings - Customer Service

Members with above RM100,000 in Account 1 – can withdraw a maximum 10% of their Account 1 savings, up to RM60,000 (whichever is lower). Again, payments will be staggered over a maximum period of six (6) months with the first payment of up to RM10,000. Essentially, this means the withdrawal amount is between RM10,000 and RM60,000.


For example, if a member has RM100,001 in Account 1, the first payment will be RM10,000 with no more monthly withdrawal possible (due to the 10% maximum limit). For accounts with RM200,000, the withdrawal amount is capped at RM20,000 (10% of RM200,000). So, the first payment will be RM10,000 and the remaining RM10,000 is staggered over 6 months (RM1,666.66 per month).


If a member has RM1 million in Account 1, the eligible amount of savings that can be withdrawn is RM60,000 (the maximum limit). The first payment will be RM10,000, while the remaining RM50,000 to be paid over 6 months or RM8,333.33 per month. Obviously, EPF contributors who have up to RM10,000 in Account 1 will see their retirement funds reduced to RM100 if they choose to withdraw.

Sabah Villagers - Children

A jaw-dropping 71% of EPF contributors have savings of  (in both Account 1 and Account 2). To make matters worse, over 30% of EPF members have savings of   Only 18% of EPF contributors have the minimum savings target of RM240,000 in their account.


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