1. What are the payments that do not require deduction for EPF contribution?
   List of Payments which do not form part of the definition of “Wages” and shall not subject to the EPF contributions include:

• Service charges;
• Overtime payment;
• Gratuity;
• Directors’ fee;
• Retirement benefits;
• Payment in lieu of notice of termination of employment;
• Retrenchment, temporary and lay-off termination benefits; and
• Any travelling allowance or the value of any travelling concession.

2. What is wage and contribution month?
   a.    Wage month is the month which employee receives his wages
   b.    Contribution month is a month after wage monthExample: The wage month for a person who is employed and receives salary in August 2005 is August as well. However, the contribution month will be September 2005.
3. Who needs to contribute?
   The person that should contribute is as follows:

• Employees who are paid salary/wage.
• Directors who receive salary/wage.
• Part-time and temporary employees and employees on probation who are paid salary/wage.
• Employees are to contribute until the age of 75 years old if they are still working regardless whether they have or have not made the full withdrawal/part of it after attaining the age of 55 years old.
• Employees who are 55 years and above and have never been a member of the EPF.
• Employees who have previously made full withdrawal under the Incapacitation Withdrawal and have since recovered and arere-employed in any service.

4. Who is exempted from contributing?
   The persons exempted from contributing are as stated in the First Schedule (Section 2) of the EPF Act 1991 and are as follows:

• All native people except those instructed to contribute by the Director-General of the Department of Aborigines
• Those employed as domestic helpers in residence or by individuals (home owners) and not employed in business/trade/professions related to the homeowner (employer) within the residence. A domestic helper includes a cook, maid, butler, governess, valet, gardener, washerwoman, driver or a person cleaning vehicles or personal guards
• External workers who are given raw materials or products to be installed, cleaned, adjusted/arranged, decorated, fixed or renovated for the purpose of sale, at premises not within the control or management of the parties providing the raw material/products except in if these workers are employed by employers as stated in the Second Schedule then they can not be exempted from contributing
• Those who have been reprimanded in prisons, Henry Gurney School, approved schools, place of detention, mental hospitals and rehabilitation centers or leper settlement
• Those employed and not from Malaysia (foreign citizens)
• Administrative employees as defined under Article 160 of the Federal Constitution

5. What penalty can be given by court if an employer is found guilty of not paying EPF contributions?
   An employer found guilty of not making EPF contributions can be imprisoned for not more than 3 years or fined not more than RM10,000 or both.
6. Is it compulsory for employers to make contributions for foreign workers?
   Not compulsory. However, if the foreign worker chooses to make contributions, it is compulsory for the employer to make  contributions.
7. When do an employee’s EPF deductions start to take effect?
   Deductions for contribution to take place starting from first month’s salary.
8. What is the deadline for monthly contribution payment?
   The monthly contribution has to be made on or before the 15th of the following month
9. Can an employer not make EPF contributions for employees who do not want contributions to be deducted?
   No. It is compulsory for an employer to make contributions for all employees who are eligible to make contributions
10. Should an employer contribute for employees who are permanent residents?
    Yes.
11. When can you withdraw the savings in Account 1?
    Savings can only be withdrawn when a member reaches the age of 55 years.
12. Can members invest their savings in Account 1?
    Part of the savings in Account 1 can be invested in unit trusts through EPF approved Fund Management Institutions. Investments that are sold will be refunded into Account 1 together with any profits gained. Members are responsible for any risks or losses to their own investments.
13. When can members withdraw their savings in Account 2?
    The savings in Account 2 can be withdrawn under specific pre-retirement withdrawals aimed at enhancing the value of life after retirement. Members can withdraw their savings from Account 2 for the following purposes:-

• Housing Withdrawal
• Allows you to own a comfortable home when you retire
• Education Withdrawal
• Allows you to finance the cost of higher education at diploma level and above for you and your children. A good education can help to improve standard of living and increase your EPF savings.
• Medical Withdrawal
• Helping in the medical costs treatment of critical illnesses faced by you/close family members. This withdrawal helps to ease your financial burden and also helping your family or you to continue working.
• Age 50 Years Withdrawal
• Allows you to prepare and plan for your retirement earlier.
• Withdrawal of excess savings above RM1 million
• Allow members with savings of RM1 million and above to withdraw their excess savings and to individually manage or invest. This is because their EPF savings is adequate to finance their basic retirement needs.

14. When can you withdraw all your EPF savings?
    You can withdraw all of your savings in Account 1 and Account 2 when:-

• You reach the age of 55 years
• Emigrating
• Confirmed disabled or deceased, with the compensation made to the next of kin or nominee
• A civil servant, which is placed under the pension scheme. The employer’s contribution (Government) is returned to the Kumpulan Wang Persaraan (KWAP).

15. How to withdraw EPF to buy for second house?
Withdrawal to purchase a second house is allowed after the first house is sold or disposal of ownership of property has taken place. Disposal of ownership refers to ‘loss of ownership of the first house owned through previous EPF withdrawal’ either due to auction, surrender of property by court order, transfer of ownership because of love and affection, destruction of house due to natural disaster, abandoned housing project or cancellation of purchase. You can withdraw under account no. 2.