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| Legal Subjects > Employment Law > Employees Provident Fund | ||||||||
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HOW LONG DOES IT TAKE FOR EPF TO APPROVE MY WITHDRAWAL APPLICATION ?If you fulfill the necessary requirements and the application forms are complete, withdrawals take an average of 2 weeks from the time of application is made. Processing during peak periods will definitely take a little longer. Incomplete application form results in late withdrawals payment. HOW MUCH OF ITS FUNDS ACCUMULATED ON CONTRIBUTIONS CAN EPF INVEST ?The EPF invest the monies accumulated on contributions to accumulate interest or dividend. The EPF Act 1991 provides for the establishment of an Investment Panel to formulate investment policies and strategies. The EPF can only invest in approved activities under the EPF Act 1991 :
As provided for under the Act, EPF is required to invest at least 70% of its total investment in government securities. Apart from this, there are other guidelines provided by the Ministry of Finance in terms of specific ceilings of the respective asset allocation. EPF can invest in stocks and shares as provided for under the Amended EPF Act 1991. However, under the present policy the EPF cannot invest more than 25% of its investment funds in equities. EPF must adhere to section 26 of the EPF Act 1991 which provides guidelines for investment. WHAT ARE THE KEY FACTORS THAT DETERMINE THE LEVEL OF DIVIDENDS ?There are 2 key factors that determine the level of dividends - The net income of EPF for the year and the total value of contributions at that time. The dividend percentage or rate of dividend for the year is calculated as follow :
Where there is an increase in net income in any one year, there may also be an increase in the number of contributors and contributions, thus this does not automatically means more dividends. The recommendation on the rate of dividend to be paid to members lies with he EPF Board, and the final approval is given by the Minister of Finance. As stipulated in the EPF Act, the minimum dividend rate payable cannot be less than 2.5%.
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