KWSP Akaun 3 Withdrawal Guide: Rules, Application, & Payment Methods

The Employees Provident Fund (EPF), or Kumpulan Wang Simpanan Pekerja (KWSP), is the main retirement savings scheme in Malaysia. In 2024, EPF introduced a new contribution structure with Account 3 (Fleksibel).

This new account allows members to withdraw money for short-term financial needs while still protecting retirement funds. Many HR professionals and employers in Malaysia also ask about this change so they can explain it to employees.

Employees sometimes need extra money for urgent expenses. KWSP Akaun 3 gives them easier access to part of their EPF savings.

However, this also raises concerns about having enough savings for retirement.

In this article, we will explain:

What is EPF Account 3 (Fleksibel)
How to withdraw money from Account 3
Withdrawal process and limits
Transfer rules between accounts
Key notes for HR and employees

What is KWSP Akaun 3 (Flexible Account)?

Akaun 3 is a new account under KWSP that provides easier access to funds.

Unlike other EPF accounts, contributors can withdraw money from Akaun 3 at any time without needing to meet special conditions.

Before this, KWSP had only two accounts:

Akaun 1 (Retirement Account): Locked savings for retirement.
Akaun 2 (Sejahtera Account): Limited withdrawals for specific needs like education, medical treatment, and home purchase.

Now, with the restructuring, KWSP has divided savings into three accounts:

Akaun Persaraan (Retirement Account): 75% of savings for retirement.
Akaun Sejahtera (Well-being Account): 15% of savings for life needs like healthcare, education, or home financing.
Akaun Fleksibel (Flexible Account): 10% of savings, can be withdrawn anytime.

This change means employees now have more flexibility in managing their short-term financial needs while still maintaining savings for their future.

Purpose of EPF Account Restructuring

KWSP introduced Akaun 3 to address two main concerns: financial flexibility and long-term savings security.

1. Financial Flexibility for Employees

Many employees face unexpected financial needs, such as medical emergencies or urgent expenses.

Akaun 3 helps them access a portion of their savings without waiting for retirement.

2. Balancing Short-term and Long-term Needs

By restructuring contributions, KWSP ensures that most savings (75%) still go toward retirement, while a smaller portion (10%) is available for immediate use.

3. Keeping Employees Financially Stable

When employees struggle with financial stress, it can impact their work performance.

Akaun 3 helps employees manage their finances better, indirectly benefiting employers through increased productivity.

How Many Times Can Employees Withdraw KWSP Akaun 3?

One of the biggest benefits of Akaun 3 is the ability to withdraw funds anytime. However, there are a few conditions:

Employees can withdraw money as often as needed.
The minimum withdrawal amount is RM50.
There are no penalties for frequent withdrawals.

For employers, this means that employees may rely on their EPF savings for emergencies instead of taking salary advances or loans, which can reduce financial strain on businesses.

Account Withdrawal Conditions for KWSP Akaun 3

Not everyone can withdraw from Akaun 3. To qualify, they must:

Be a Malaysian citizen or a non-citizen EPF member.
Be below 55 years old.
Have savings in Akaun 3.
Withdraw at least RM50 per transaction.
Non-citizen employees must apply manually at the nearest KWSP office.

For a smooth withdrawal process, employees need to prepare these documents:

Valid identification (MyKad or passport for non-citizens).
An active personal bank account under their name.
Updated bank details in KWSP i-Akaun.

Once submitted, withdrawal requests typically take up to 7 working days to process.

Employees can track their request via KWSP i-Akaun. Any delays should be reported to KWSP customer service.

One-Time Transfer to Account 3 (No Longer Available)

When Account 3 was first introduced, members could transfer money once from Account 2 to Account 3 (between 12 May – 31 August 2024).

This allowed them to start withdrawing immediately.

But as of 1 September 2024, this one-time transfer option is no longer available. Now, Account 3 will only grow through monthly contributions.

How to Apply for KWSP Akaun 3 Withdrawal

Employees can apply for withdrawals through two methods, online via KWSP i-Akaun (desktop and mobile app) and visit a KWSP Branch.

Withdraw Online via KWSP i-Akaun Desktop

Login your i-Akaun account (https://secure.kwsp.gov.my/member/member/login)
Click “Pengeluaran,” then choose “Keluarkan simpanan anda”

Click “Akaun Fleksibel."

The amount that is eligible for withdrawal will appear at the top right of the page. If you agree with the amount, click “Keluarkan Sekarang.”

Withdraw Online via KWSP i-Akaun Mobile App

KWSP also provides a tutorial on withdrawing your KWSP Akaun 3 through the KWSP mobile app. Check out the infographic below.

Here’s the step-by-step process:

Log in to the KWSP i-Akaun app.
Tap Withdrawal → choose Withdraw Your Savings.
Select Akaun Fleksibel → click Withdraw Savings.
Enter the withdrawal amount (minimum RM50) → click Continue.
Add or confirm your bank details (under your own name).
Read and accept the Member’s Declaration.
Enter the TAC number for confirmation.
You will see a confirmation page once successful.

If you prefer to learn from video, check the tutorial video by clicking this link.

Withdraw Offline in KWSP Branch

Employees who cannot access KWSP i-Akaun can apply for Akaun 3 withdrawal by visiting the nearest KWSP branch. Here’s what they need to know before going:

Visit the official KWSP website to find the nearest branch.
Prepare the required documents, such as:

Valid identification (MyKad for Malaysians or passport for non-citizens).
Active personal bank account details under employees’ own name.
Completed withdrawal application form (if required, available at KWSP branches).

Submit the withdrawal request by providing the documents to the officer. The officer will verify the details and process the request.
Once the application is approved, the withdrawal amount will be credited to the employee’s bank account within 7 working days.
Employees can track their withdrawal status via KWSP i-Akaun or contact KWSP customer service if there are delays.

Withdrawal Limits and eKYC

Withdrawals above RM250 require eKYC (electronic identity verification).
If eKYC fails, members must go to an EPF office or Self-Service Terminal (SST) for thumbprint verification.
Withdrawals below RM10,000 can be verified online.
Withdrawals above RM10,000 may require thumbprint verification at EPF office.

Withdrawal Timeline

After approval, members usually receive money within 7 working days into their registered bank account.

The account must be active and under the member’s name.

However, delays can happen due to incorrect bank details or system maintenance at KWSP or the bank.

If payment is not received after 7 working days, employees should contact KWSP customer service for assistance.

Can You Transfer Funds Between EPF Accounts?

Yes, but with rules. Members can move savings only in these directions:

From Account 3 → Account 2
From Account 3 → Account 1
From Account 2 → Account 1

Important: Once transferred, it cannot be reversed. Transfers from Account 1 to Account 2 or 3 are not allowed, because Account 1 is strictly for retirement.

Payment Method

Once the withdrawal request is approved, the money will be transferred directly to the employee’s bank account.

Akaun 3 withdrawals are processed only through direct bank transfer. Unlike other KWSP withdrawals, cheque or over-the-counter payments are not available.

To ensure a smooth transaction, employees should:

Update their bank details in KWSP i-Akaun.
Use a valid personal account (not joint or company accounts).
Check if their bank account is active and able to receive deposits.
Track their withdrawal status via KWSP i-Akaun.
Report any delays to KWSP customer service.

More Information

For more details on KWSP Akaun 3, employees and employers can refer to:

KWSP official website: www.kwsp.gov.my
Customer service hotline: 03-8922 6000
Nearest KWSP branches for in-person assistance

KWSP may also release future updates on the restructuring, so it is advisable for employers to stay informed.

FAQ

Can I transfer money from Akaun 1 or Akaun 2 to Akaun 3?

No, employees cannot transfer funds between accounts. Akaun 3 starts with a zero balance and grows only through new contributions.

Will withdrawals from Akaun 3 affect my retirement savings?

Yes, since 10% of contributions go to Akaun 3, employees may have less savings for retirement. Employers can encourage employees to use Akaun 3 wisely and only withdraw for necessary expenses.

Is Akaun 3 compulsory for all EPF contributors?

Yes, all new KWSP contributions from May 2024 onwards will be divided into the three new accounts.

What happens if I don’t withdraw money from Akaun 3?

If employees don’t withdraw from Akaun 3, their savings will remain in the account and continue earning dividends.

Will employers need to contribute differently with the new structure?

No, employer contribution rates remain the same. However, the way savings are distributed between the three accounts has changed.

With Akaun 3, employees now have more control over a portion of their EPF savings.

While this can be helpful for urgent needs, withdrawing too often may reduce retirement funds.

Employers can guide their employees to make responsible decisions by encouraging smart financial planning, ensuring they balance their current needs with their future security.

Need to hire employees in Malaysia?

Post your job ads on Maukerja, Ricebowl, LinkedIn, and Google with AJobThing to find the best talent today!