Employer's Role in EPF Withdrawals for Non-Malaysian Employees

When a non-Malaysian employee is preparing to leave Malaysia permanently, they may wish to withdraw their EPF savings through the Leaving the Country Withdrawal.

Although the withdrawal application is submitted by the employee, employers also play an important supporting role.

By ensuring employee records are accurate, bank account information is up to date, and employees are encouraged to apply early, employers can help facilitate a smoother withdrawal process.

Why Employers Play an Important Role

EPF encourages employers to support non-Malaysian employees throughout the withdrawal process. Although employers do not submit the withdrawal application on the employee's behalf, they can help ensure the information required for the withdrawal is accurate and complete.

By taking a few simple steps, employers can help facilitate a smoother EPF withdrawal process before the employee leaves Malaysia.

1. Verify the Employee's Passport Details

Employers should ensure that the employee's passport details registered with EPF are accurate.

The passport information recorded with EPF should match the details used for the employee's bank account. Consistent information helps ensure EPF withdrawal payments can be processed smoothly and according to the established procedures.

Employers are encouraged to verify these details before the employee submits their withdrawal application.

2. Ensure the Employee's Bank Account Remains Active

Employers are encouraged to ensure that non-Malaysian employees maintain an active bank account for salary payments and EPF savings withdrawals.

The employee's bank account should remain active until all EPF withdrawal and payment transactions have been completed.

Keeping the bank account active helps ensure the EPF withdrawal payment can be credited successfully.

3. Encourage Early Submission of the Leaving the Country Withdrawal

For employees applying for the Leaving the Country Withdrawal, employers are encouraged to remind them to submit their application as early as possible after:

Obtaining their Check-Out Memo, or
The cancellation of their work pass.

Submitting the application early helps facilitate a smoother withdrawal process before the employee leaves Malaysia.

What Is a Check-Out Memo?

A Check-Out Memo is a document issued when a foreign employee's work pass has been cancelled before they leave Malaysia.

According to EPF, employees applying for the Leaving the Country Withdrawal are encouraged to submit their application as early as possible after obtaining this memo or after their work pass has been cancelled.

Employer Checklist

Before a non-Malaysian employee leaves Malaysia, employers should:

Verify that the employee's passport details registered with EPF are accurate.
Ensure the passport details match the information used for the employee's bank account.
Remind the employee to keep their bank account active until all EPF withdrawal payments have been completed.
Encourage the employee to submit their Leaving the Country Withdrawal application as early as possible after obtaining their Check-Out Memo or after their work pass has been cancelled.

Although the EPF withdrawal application is submitted by the employee, employers play an important supporting role in helping the process run smoothly.

By ensuring employee records are accurate, bank account information is up to date, and employees are encouraged to apply early, employers can help facilitate a smoother EPF withdrawal process before the employee leaves Malaysia.

Note: This article is for general informational purposes only. EPF withdrawal requirements and procedures may change over time. Always refer to the official EPF website for the latest information before submitting a withdrawal application.

FAQs

Can an employer submit an EPF withdrawal application for a non-Malaysian employee?

No. The application is generally submitted by the employee. Employers can support the process by ensuring the employee's information is accurate.

Do employers need to apply to EPF when a foreign employee leaves Malaysia?

No. Employers do not submit the EPF withdrawal application. However, they can support the process by ensuring the employee's information is accurate and encouraging them to apply early.

When should a non-Malaysian employee apply for the Leaving the Country Withdrawal?

EPF encourages employees to apply as early as possible after obtaining their Check-Out Memo or after their work pass has been cancelled.

Why must the passport details match the bank account information?

Matching details help ensure the EPF withdrawal payment can be processed smoothly.

Does the employee need to keep their bank account active?

Yes. The bank account should remain active until all EPF withdrawal payments have been completed.

What is a Check-Out Memo?

A Check-Out Memo is issued when a foreign employee's work pass is cancelled before they leave Malaysia.

How can employers help avoid delays in EPF withdrawals?

Employers should verify passport details, ensure the employee's bank account remains active, and encourage early submission of the withdrawal application.

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