Expatriate Forums in Malaysia

There are companies that make EPF contribution for their foreign employees. This will depends on the negotiation when discussing for the employment terms.

If you need to know more you can visit the website of EPF or give them a call to find out more. http://www.kwsp.gov.my/index.php?lang=en

Cheers!

Before you contribute to EPF, check whether you are allowed to utilize it as the way Malaysian citizen. I was told that non-Malaysian citizen are not allowed to withdraw for investment, housing and etc....

A foreigner is entitled to EPF, but it is not compulsory for the company.
When you start a new job you should receive your EPF, unless you sign a document stipulating that you renounce it.

EPF is not mandatory for foreigners, and you cannot withdraw the money and utilise it like the way malaysians are allowed to, for housing , education etc. You will be allowed to withdraw it only after your contract expires here and after you have cleared all tax.But you can opt out of EPF at any point of time even if you are enrolled in it. One of the key advantages of EPF for an expat is that if you are not covered under the tax equalisation scheme , this can save your tax.

Therefore for those foreigners who has intention to settle down in Malaysia(eg marry a Malaysian and stay here forever), Don't contribute to EPF because you can't take out the money even if you retired!

ncyong wrote:Therefore for those foreigners who has intention to settle down in Malaysia(eg marry a Malaysian and stay here forever), Don't contribute to EPF because you can't take out the money even if you retired!

Thats not correct. Foreigners who reach the legal limit to withdraw their EPF may do so, regardless if they are foreign or not.

What do you mean 'Foreigners who reach the legal limit ' ? I've checked with the EPF and it's confirmed that foreigners are not allowed to utilize their EPF money unless they are PR or when they become disablility!

ncyong wrote:What do you mean 'Foreigners who reach the legal limit ' ? I've checked with the EPF and it's confirmed that foreigners are not allowed to utilize their EPF money unless they are PR or when they become disablility!

Ok. I called up the EPF hotline and they clarifyed the following:

1) A foreigner who DOES NOT have a PR at the time of retirement, MUST LEAVE the country, irrespective if they are married to a local or not, and then re-apply to come back and stay in Malaysia again. They (expats/foreigners) CAN make full withdrawal at ANYTIME provided it is upon the completion of their contract or employment.

2) A foreigner may withdraw his EPF in FULL upon reaching the retirement age of 55 provided he has PR, in which case, he can stay on in Malaysia without leaving the country.

Hope thet clarifies the situation for you.

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