Rules Reference
Withdrawal formulas (KWSP policy)
| Type | Amount |
|---|
| Buy / Build, with financing | (cost − approved financing) + 10% of cost, or entire Akaun Sejahtera balance, whichever is lower |
| Buy / Build, self-financed | Cost + 10%, or entire balance, whichever is lower |
| Reduce / Redeem | Total outstanding balance or entire balance, whichever is lower, minimum RM500. Once per year |
Gates
| Rule | Value |
|---|
| Age, Buy / Build / Reduce-Redeem | Below 55 |
| Age, Monthly Instalment | 54 years 6 months |
| Minimum Akaun Sejahtera balance | RM500 (RM600 for Monthly Instalment) |
| Maximum properties | Two, and the first must be disposed of first |
| Overseas property | Not eligible |
| Account split (law) | 75% Account I / 15% Account II / 10% Account III |
Formulas and gates: published by KWSP at kwsp.gov.my. These are EPF policy, not gazetted law — the Act delegates the terms to the Board and contains no formula. Account split: P.U.(A) 118/2024, in operation 11 May 2024, substituting reg. 5A(2) of the EPF Regulations 2001. Shariah: s.2 EPF Act 1991, "loan includes financing in accordance with Shariah", inserted by Act A1504 s.2, in force 1 April 2016.
The Cap Is the Part People Miss
The entitlement formula and the account balance are two separate limits, and KWSP applies whichever is lower. Take a RM500,000 purchase with RM450,000 approved financing:
Entitlement
| Difference | RM500,000 − RM450,000 = RM50,000 |
| Plus 10% of cost | RM50,000 |
| Entitlement | RM100,000 |
If your Akaun Sejahtera holds RM200,000, you withdraw RM100,000 and RM100,000 stays put. If it holds RM60,000, you withdraw RM60,000 and the entitlement is irrelevant. Planning a purchase off the entitlement figure alone is how people end up short at completion.
Akaun Fleksibel Is Not a Housing Withdrawal
Akaun Fleksibel money can be spent on anything, including a house. But it is not processed as a Housing Withdrawal, it is not subject to these formulas, and it does not consume your housing entitlement. KWSP does not frame it as a housing product. Worth knowing, because it means a Fleksibel withdrawal and a Buy House withdrawal are not alternatives to each other.
One asymmetry: renovation is barred from the Reduce/Redeem withdrawal but is a KWSP-suggested use of Akaun Fleksibel.
Islamic Financing Is Covered by the Statute, Not by Policy
This is stronger than it usually gets credit for. The definition in section 2 of the EPF Act 1991 was amended in 2016 to read that "loan" includes financing in accordance with Shariah. Because the housing withdrawal grounds in section 54(6) are all framed around a "loan", the amendment pulls Islamic home financing into every one of them automatically, rather than relying on a KWSP concession that could change.
In practice, eligibility turns on who your financier is and whether the property is charged as security, not on whether the contract is murabahah, musharakah mutanaqisah or tawarruq. KWSP's recognised-lender list covers institutions licensed under Islamic financial services legislation, and its Akaun Sejahtera purpose list includes takaful protection.
A Note on the Account Names
The 75:15:10 contribution split is law, gazetted in P.U.(A) 118/2024. The names Akaun Persaraan, Akaun Sejahtera and Akaun Fleksibel are not: they appear in no gazetted instrument and are KWSP's own branding for Account I, II and III. Nothing turns on this for a withdrawal, but it is why official documents and the statute use different vocabulary from the KWSP website, and why "Account 2" still appears everywhere despite being superseded.