EPF Withdrawal for Education: Employer’s Guide to Supporting Staff

Education plays a vital role in career growth, and for many employees, it can also open better opportunities for their family members. Malaysia has EPF withdrawal for education scheme, which gives employees the option to use part of their Akaun Sejahtera savings to pay for recognised higher education programmes, whether for themselves, their spouse, children, or parents.

Understanding how this scheme works is important. Not only can you guide your staff through the process, but you can also support their upskilling and career development while staying compliant with EPF regulations.

What is EPF Withdrawal for Education?

The EPF Withdrawal for Education scheme lets members use part of their Akaun Sejahtera to cover tuition fees, outstanding study loans, and certain related costs for approved courses. It applies to studies at recognised local or overseas institutions.

The aim is to make higher education more accessible, helping employees improve their qualifications or supporting their dependents’ education without the full burden of immediate out-of-pocket payment.

Who is Eligible for EPF Education Withdrawal?

Eligibility covers both Malaysian and non-Malaysian EPF members, as long as they are under 55 years old, have sufficient savings in Akaun Sejahtera, and are pursuing (or have dependents pursuing) recognised education.

Employees can apply if they are studying full-time, part-time, through distance learning, or franchise programmes at approved local institutions. For overseas institutions, only full-time programmes qualify.

The scheme covers education for:

The member
The member’s spouse
The member’s children
The member’s parents

However, if the course is already fully funded by a scholarship or loan, the withdrawal is not applicable. Only those with no funding or partial funding can proceed.

Types of Education Programs Covered

The scheme applies to:

Local institutions accredited in Malaysia, covering academic, professional, skill-based, and vocational studies from Certificate Level 3, diploma, degree, and postgraduate level.
Overseas institutions recognised by EPF for full-time programmes.
Courses approved under EPF guidelines, which means they meet the accreditation and recognition requirements set out in the EPF rules.

Apart from tuition fees, certain additional costs such as hostel fees and a one-way flight ticket (for first-year students studying outstation or abroad) can also be covered.

How to Apply for EPF Withdrawal for Education

Employees can apply through the following steps:

Log in to KWSP i-Akaun to start the application.
Submit the required forms and documents, such as the offer letter from the institution, invoice or fee breakdown, and identity documents.
Wait for EPF to process the application. Approval depends on meeting all criteria and providing complete documents.
Receive payment. EPF may transfer the money directly to the institution or to the member’s account if the fees have already been paid (with valid proof).

If employees don’t have internet access, applications can also be submitted at EPF counters or via mail with the relevant forms.

Documents Required

To help your employees prepare, you can advise them to gather:

Offer letter from the university or college.
Invoice or fee breakdown from the institution.
Identity documents (MyKad or passport).
EPF Form 9B (if applicable).
Proof of relationship if applying for a spouse, child, or parent.
Accreditation letter if required for course verification.
For overseas studies, passport pages and proof of payment to the institution.

If the fees have already been paid, employees will also need to submit the official receipt and bank details for reimbursement.

Employer’s Role in EPF Education Withdrawal

Employers are not directly responsible for approving the withdrawal, but they play an important role in the process:

Update EPF contributions promptly so employees meet eligibility requirements.
Provide employment verification if requested by EPF.
Guide employees on the required documents and process, especially if they are unfamiliar with EPF procedures.

By offering support, you show your commitment to staff development and welfare.

Processing Time and Payment

The processing time depends on the completeness of the application and EPF’s verification. Once approved, payments are made either directly to the higher learning institution or to the member’s account for reimbursement.

If paying the institution, EPF will settle outstanding tuition fees directly. If reimbursing the member, the payment will be based on proof that the tuition fees were paid within one year before the application date.

Impact on Employee EPF Savings

FAQ

Can an employee withdraw EPF for their children’s education?

Yes. The scheme covers education for the member’s children, spouse, and parents, as well as the member themselves.

Is there a limit to the amount that can be withdrawn for education?

The amount is limited to the lower of total tuition fees/outstanding education loan or the savings in Akaun Sejahtera.

Can employees withdraw EPF for overseas education?

Yes, provided the overseas institution is recognised by EPF and the programme is full-time.

What happens if the employee leaves the company during the withdrawal process?

The withdrawal process is between the employee and EPF, so leaving the company will not automatically cancel the application, as long as the employee still meets EPF’s criteria.

Does the employer need to approve the EPF education withdrawal?

No. EPF processes the application directly, but the employer may be asked to confirm employment details.

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