Getting back EPF for foreigners

Two scenarios:

1. Once you leave out from the country and withdraw by your own - withdrawal process is pretty simple and easy (provided good support from your HR).

2. In the unlike/unfortunate event that appointed person (similar to life insurance claim) I.e. Your parents or wife, etc - this will have very lengthy procedure to follow in terms of withdrawal process.

As for above point #2, I would suggest that discuss with your HR and understand the entire process otherwise nobody can claim your hard working money.

Furthermore, i would say 'you're one of the luckiest among luckiest to receive proper EPF'....

Not everyone enjoyed the EPF privilege as you do. According to Malaysian labor law, employer contribution is RM5 only however it is totally up to the employer to determine their contribution considering if they want to maintain employer of the choice.

Hence my advise for new job seekers is EPF should be negotiated and clearly agreed during your job offering...

Hope my two cents comment clarifies your concern. Cheers!

Can be a little long winded but here is the correct process - probably good to initiate it within the 2 months prior to leaving in case of any complications:

http://www.kwsp.gov.my/portal/documents … __Eng_.pdf

Otherwise, as it is currently earning 6.5% and that is about the best rate of interest most places - some exchange rates are not in favour as well - could be a case to leave it for the time being unless you need the funds.

Gravitas,

i fully agree with you, we should plan well ahead, in facts I'm sure we have proper agreed exit procedure to follow according to the contract (i.e. 1 or 3 months prior noticed).

As I highlighted, this is purely depends on how your HR corporate in the termination process however none of the company would favor us during the resignation process regardless of whether how loyal you are or lengthy service provided to the company - this is the reality - you would hardly receive golden handshake exit unless if you're lucky! That's why we should always love our JOB but not the COMPANY .

In many cases (practically speaking), company will hold your last month salary till your income tax is properly cleared (a letter from HASIL).

Assuming you planned to leave the country early while factoring your annual leave, now you can imagine the situation...

1. you may withdrawn EPF except your last month salary - this is allowed since you have all the necessary docs as stated in their website.
2. your company yet to advise EPF office to terminate your EPF account but your company is still waiting for tax to be cleared hence company will continue to deduct your last month EPF though you've left the country. Too much troubles for you to take your last month EPF returns....

My two cents is just simply settled everything (of coz well in advance) before you leave out the country....

Process is for us to follow as a guideline but reality is always different case by case hence practicality most important than theory:-) I presume.

Cheers!

Hi the only a few companies pay epf for expats and they do so as a bonus system. And crafty as if you do a runner you loose 1/5th of salary in effect

As these companies know the system should be no issue as they do reclaims all the time. Unless you negotiated this and first person to get.

The big problem happens if mistakes made in payment. I have local colleagues who lost epf at previous employers as they "forgot" to pay the epf. You should check your account to check payments made and upto date.

Well said, unfortunately there is no online portal to check your balance for foreign workers unless you visit them and compare with your YTD (year-to-date) balance in your payslip. Quite hassle though.

Usually reputed companies won't forget but unforeseen mistakes happen anytime and have to deal with anyways.

P/S: EPF is kinda part of our retirement plan so I would suggest all expats must fight for it otherwise you would have NOTHING when you're exiting this country, beside the point, you may still have to pay TAX depends on the final assessment by HASIL.

Thanks everyone for your comments. I crosschecked with my HR and they mentioned that it takes 2-3 weeks to get the EPF money into my account.

Btw how do I find out my member number? Will HR have this or do I need to visit an EPF office?

As Nemo mentioned, I want to check if the money deducted from my salary + employer contribution = records of EPF. Plan to do this once a year for as long as I'm in Malaysia to ensure no errors at the last minute.

You should get a statement from KWSP once a year (by mail) where you can see the breakdown of that years contributions (by month) and also a total balance. I usually get this letter in February.

Maybe your EPF account isn't registered with your mailing address? Your EPF number could be shown on your payslips since the payslip should contain information about your contribution and also the company contribution. HR must definitely have your EPF number or they couldn't pay into your account.

You can go to the KWSP office and get a statement as well, they're even open on some Saturdays.

It took my colleague around 2 weeks to get the money from his EPF account once he finished his contract so 2-3 weeks sounds correct. Don't forget that your contributions to EPF is tax deductible as well (up to 6K/year).

Thanks for the info farm. My EPF number is not shown on my payslip. I think I will need to make a visit to an EPF office.

I wasn't aware that EPF is tax deductible. How is this calculated?

Up to 6K/year of your own contribution is tax deductible. Just input how much you contributed with  when you do your taxes next year.

Hi,

If the EPF is tax free, would it not make sense for an expat to ask his employer to pay him part of his salary in EPF?  I hear that your employer can pay you  even more than 12% EPF if he wants. Why not get a large chunk of your salary paid this way? All you would have to do is wait til you will leave Malaysia and make a full withdrawal,  no???

As was earlier clarified, entire EPF is not tax free, but up to 6K per year.

Thanks!  The 6k would be from the total contribution from both employee and employer,  right?

Considering that I get a company car, paid schooling for my kids, and paid apartment, even with all these benefits, seems like I will be making a lot less NET salary in Malaysia. Almost everything seems to be taxable

Albertaa - yes all the fringe benefits are taxed as well (car, schooling, housing). Plus non-residents pay 25% deduction tax rate if not resident in the country for 182 days in a calendar year. Plus expats tend to have to pay higher rates for things, e.g. only shown the most expensive condo units. Companies are not obliged to pay EPF for foreigners at the normal rates, they can opt for a flat monthly rate which is just a handful of RM.