Your EPF savings are meant for your retirement. But other than this, what does EPF do?
If an EPF member suffers from incapacitation or in the event of death, the Incapacitation and Death Compensations are payable to the member/guardian or beneficiary to help lessen the financial burden :
The Incapacitation Compensation will be paid to the member who has lost his job owing to incapacitation and has made an Incapacitation Withdrawal. The amount for Incapacitation Benefit is RM5,000.00, subject to certain conditions,
Compensation for death (Death Withdrawal) to the member’s dependent. The amount for Death Benefit is RM2,500.00, subject to certain conditions.
*The money comes from EPF investment earnings and not from the member’s savings.
For EPF members who are still employed in the Public Service , they are eligible for the Pensionable Employees Withdrawal or Optional retirement withdrawal which allow them who opt for early retirement from the Public Service to withdraw their contribution from EPF.
Besides, Health withdrawal allows EPF members to withdraw their savings from Account 2 to pay for medical expenses incurred for the treatment of critical illnesses AND/OR to buy medical aid equipment, as approved by the EPF Board, for themselves or their allowed family members.
Other than that, an EPF member can also make an Education Withdrawal if they want to finance their higher level of education in accredited LOCAL or OVERSEA universities, either for themselves or for their children. Additionally, this withdrawal can also be used to reduce/settle an existing study loan.(PTPTN)
*Health & Education withdrawal from Account 2 only.
Last but not least, do you know that you are EXEMPTED from paying Income Tax for monies withdrawn under the EPF savings withdrawal schemes ? Returns on the EPF investment are also tax exempted!
For more information, visit www.kwsp.gov.my
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