The Employees Provident Fund (EPF) is working towards removing its eligibility conditions for the i-Sinar withdrawal facility. This was confirmed by Finance Minister Datuk Seri Tengku Zafrul Abdul Aziz.

Currently, EPF members will need to fulfil certain eligibility criteria before they can make i-Sinar applications. You either need to have not contributed to the EPF for at least 2 months or suffered a reduction of your base salary by at least 30% (Category 1); or your total income must have been reduced by at least 30% (Category 2). Category 1 application approvals are automatic with no need for supporting documents, whereas proof of reduction of income is required for Category 2.

The change will see all EPF members below the age of 55 able to make withdrawals from their Akaun 1, subject to their remaining account balance. “Members who have applied for i-Sinar based on the current criteria will have their applications automatically approved shortly,” the finance minister’s statement read.

However, the maximum withdrawal amount and the six-month payment schedule announced previously will remain in place with no changes. Members with RM100,000 and below in Akaun 1 can withdraw up to RM10,000 with a first-month payment of up to RM5,000, whereas those with more than RM100,000 can withdraw up to 10% of their savings capped at RM60,000 with a first-month payment up to RM10,000.

According to Datuk Seri Tengku Zafrul, the decision to remove the eligibility conditions was made following the advice of Prime Minister Tan Sri Muhyiddin Yassin to improve the i-Sinar initiative in accordance with public feedback. It is hoped that the removal of the withdrawal conditions will help EPF members with their financial challenges this ongoing pandemic.

(Source: Ministry of Finance)

 

• TAGS:
• Covid-19
• Employees Provident Fund (EPF)
• EPF
• EPF Akaun 1
• EPF i-Sinar
• EPF Withdrawals
• i-Sinar
• i-Sinar Applications
• Minister of Finance
• Prime Minister