EPF Account 2 Withdrawal Malaysia: Housing, Education, Medical, PR1MA & Hajj — Complete Guide 2026

Malaysian employees contribute to EPF every month without fail — it appears on every payslip as a mandatory deduction. But beyond the monthly routine, few people understand one of the most useful features of their EPF savings: Account 2 withdrawals.

Account 2 (Akaun Sejahtera) exists specifically so you can access your EPF savings before retirement for life's major expenses — buying a house, paying for education, covering critical medical treatment, or performing the Hajj pilgrimage.

This guide explains exactly what you can withdraw from Account 2, how much you can take out, what documents you need, and how to apply.

To see your current Account 1 and Account 2 balances broken down, use the free EPF calculator Malaysia by DuitTools. It shows you exactly how your monthly contributions split across accounts and projects your savings growth over time.

EPF Account Structure: Where Does Your Money Go?

Since May 2024, every EPF contribution is split into three accounts:

Before May 2024, the split was simply 70% to Account 1 and 30% to Account 2. The restructuring introduced Account 3 and reduced Account 2's share from 30% to 15%.

What this means in practice: an employee earning RM5,000 per month contributes 11% (RM550) to EPF. Of that RM550, RM412.50 goes to Account 1, RM82.50 to Account 2, and RM55 to Account 3.

If you want to check how your specific salary plays out, plug your numbers into the EPF calculator and see the full breakdown.

What Can You Withdraw from EPF Account 2?

1. Housing Withdrawal

The most common Account 2 withdrawal. You can use your Account 2 savings for:

Buying a house You can withdraw to fund the purchase of a residential property. This includes landed houses, condominiums, apartments, and serviced residences. The property must be in Malaysia and for own occupation (though some flexibility exists for investment properties).

How much can you withdraw for housing? The formula: (Purchase price − Loan amount) + 10% of the purchase price, capped at your total Account 2 balance.

Example: You buy a RM400,000 house with a 90% loan (RM360,000). The gap is RM40,000 plus 10% of RM400,000 (RM40,000) = RM80,000 total. If your Account 2 has RM50,000, you can withdraw the full RM50,000. If your Account 2 has RM100,000, you can withdraw RM80,000.

Building a house on your own land You can withdraw to construct a residential building on land you own. You'll need approved building plans from the local council and a construction contract or quotation from a registered contractor. The withdrawal amount is based on the construction cost estimate.

Reducing or repaying your housing loan Already have a mortgage? You can withdraw from Account 2 to reduce the outstanding balance. This is available once per year. The withdrawal amount is the lower of your outstanding loan balance or your Account 2 balance.

This is an underused strategy — if you have surplus in Account 2 and a housing loan at 4% interest, withdrawing to pay down the loan effectively earns you a guaranteed 4% return (since you avoid that interest).

PR1MA housing Purchasing a PR1MA (1Malaysia People's Housing Programme) home qualifies for the same withdrawal terms as standard housing, with the added benefit that PR1MA properties often have lower entry prices, making Account 2 funds go further.

2. Education Withdrawal

Account 2 can fund education expenses for yourself or your children at approved institutions.

What qualifies:

• Full-time or part-time courses at institutions recognised by MQA (Malaysian Qualifications Agency)
• Local public universities (UM, UKM, USM, UPM, UTM, etc.)
• Local private universities and colleges with MQA accreditation
• Overseas institutions recognised by the Malaysian government
• Professional qualifications (ACCA, CIMA, CPA, CFA, etc.)

How much can you withdraw? The actual course fees or your Account 2 balance, whichever is lower. You can withdraw for each academic year or semester. Payment goes directly to the institution — not to your personal bank account.

Required documents:

• Letter of acceptance from the institution
• Itemised fee statement
• Student's IC (MyKad) — for children, their birth certificate and MyKid
• Your EPF statement (downloadable from i-Akaun)

3. Medical Withdrawal

This is the least-known but potentially most important Account 2 withdrawal. It covers critical medical treatment for yourself, your spouse, parents, or children.

What qualifies: The medical condition must be listed as a critical illness under EPF's approved schedule. This includes:

• Cancer (all types)
• Heart disease requiring surgery
• Stroke
• Kidney failure requiring dialysis
• Major organ transplant
• Coronary artery bypass surgery
• Multiple sclerosis
• Parkinson's disease
• Paralysis / loss of limbs

EPF also covers certain non-critical but necessary treatments, including:

• Fertility treatment (IVF)
• Dental treatment (major procedures only — not routine cleaning or fillings)
• Medical devices (hearing aids, prosthetic limbs, wheelchairs)

How much can you withdraw? The actual medical costs or your Account 2 balance, whichever is lower. Payment goes directly to the hospital or medical service provider.

Required documents:

• Doctor's letter confirming the diagnosis and treatment plan
• Itemised quotation from the hospital
• Patient's IC (if different from EPF member)
• Proof of relationship (marriage certificate for spouse, birth certificate for children/parents)

For ongoing treatments like dialysis or chemotherapy, you can apply for multiple withdrawals as costs accumulate.

4. Hajj Withdrawal

Muslim EPF members can withdraw from Account 2 to perform the Hajj pilgrimage.

How much can you withdraw? The actual cost of the Hajj package as quoted by Tabung Haji (TH) or an approved travel agent, up to your Account 2 balance. The current Hajj package cost for Bumiputera pilgrims via Tabung Haji is approximately RM29,000–RM33,000 (subject to TH's annual announcement and Bumiputera subsidy).

You can also withdraw to perform umrah, though some conditions apply.

Required documents:

• Hajj offer letter from Tabung Haji
• Package cost breakdown from Tabung Haji or approved travel agent
• Flight itinerary
• IC (MyKad)

How to Apply for EPF Account 2 Withdrawal

All Account 2 withdrawals can be initiated online through i-Akaun (the EPF member portal) at kwsp.gov.my. Here's the step-by-step:

1. Log in to i-Akaun at kwsp.gov.my (or the KWSP i-Akaun mobile app). You'll need your IC number and password. If you haven't activated your i-Akaun, you'll need an activation code — which you can get at any EPF kiosk or EPF counter.

2. Navigate to "Withdrawal" from the main menu, then select the withdrawal type (Housing, Education, Medical, or Hajj).

3. Upload the required documents. The portal lists exactly what you need for each withdrawal type. Documents must be in PDF or image format and clearly legible.

4. Submit and wait for processing. EPF typically processes withdrawals within 7 to 21 working days, depending on the withdrawal type and completeness of your documentation.

5. Payment. Once approved, payment goes directly to the relevant party — the property seller or developer (for housing), the educational institution, the hospital, or Tabung Haji. In some cases, funds may be credited to your bank account.

You can also apply in person at any EPF branch. Bring original and photocopied documents. The counter officer processes your application on the spot.

Important Rules and Limits

One withdrawal per category at a time. For example, you can't have two housing withdrawals active simultaneously — the first must be completed (or you must wait 1 year for loan reduction withdrawals).

Account 2 balance minimum. Some withdrawals require a minimum balance remaining in Account 2 — typically RM100 to RM500 depending on withdrawal type. This keeps your account active.

Joint applications. For housing, if both you and your spouse are EPF members, both can apply to withdraw from your respective Account 2 for the same property.

Tax implications. EPF Account 2 withdrawals for housing, education, medical, and Hajj are not taxable. However, if you withdraw above certain limits or for non-qualifying purposes, different rules may apply.

How to Check Your Account 2 Balance

Before applying for any withdrawal, check how much you have available.

Option 1: i-Akaun (Online) Log in at kwsp.gov.my. Your dashboard shows your Account 1, Account 2, and Account 3 balances clearly.

Option 2: EPF Kiosk Visit any EPF kiosk (located at EPF branches and selected shopping malls). Insert your MyKad and print a statement.

Option 3: Use an EPF calculator Our free EPF calculator Malaysia shows you an instant breakdown of your projected balances across all three accounts based on your salary, age, and contribution history. It also models how much you'll have at retirement age under different scenarios.

Frequently Asked Questions

Can I withdraw from Account 2 if I'm buying a second house?

Yes. There is no restriction on buying a second or subsequent property. However, if you still have an active housing loan on your first property, the bank will factor that into your DSR (Debt Service Ratio) calculation when approving a new loan. Use our loan calculator to check how a new housing loan affects your monthly commitments.

How long does an Account 2 withdrawal take?

Most withdrawals are processed within 7 to 21 working days from the date of complete document submission. Housing withdrawals (which require property title verification) tend to take the full 21 days. Medical withdrawals are often expedited — inform the counter officer if the treatment is urgent.

Can I withdraw from Account 2 if I'm already retired?

Once you reach age 55, your Accounts 1 and 2 are consolidated into a single Akaun 55, from which you can withdraw freely. Account 2 withdrawal rules no longer apply after 55.

What happens to my Account 2 balance when I die?

Your total EPF savings (all accounts) are paid to your nominated beneficiaries. If you have not made a nomination, the funds go through the estate administration process, which can take months. Make your EPF nomination via i-Akaun.

Can self-employed people use Account 2?

If you contribute to EPF voluntarily (via i-Saraan or self-contribution), your contributions go entirely to Account 1 under the old rules. However, under the voluntary contribution framework, the account allocation follows the same 75/15/10 split, so yes — self-employed contributors have an Account 2 balance they can access.

Can I use Account 2 to pay for a rental deposit?

No. Account 2 withdrawals for housing cover buying or building a property, or repaying a housing loan — not renting.

Put Your EPF Knowledge Into Practice

Understanding your EPF is the first step. The second is seeing your numbers clearly.

Use the free EPF calculator Malaysia by DuitTools to:

• See your Account 1, Account 2, and Account 3 breakdown
• Project your savings growth with annual EPF dividends
• Simulate voluntary contributions and their impact at retirement

If you're planning to buy property and want to check your housing loan affordability alongside your EPF withdrawal, use our loan calculator Malaysia to see your monthly instalment, total interest, and DSR ratio.