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The Employee Provident Fund (EPF) has announced the criteria and details of i-Sinar, which is now open to up to eight million eligible members.
The eligibility criteria are as follows:
Category 1
Eligible members include workers in the formal sector, the self-employed, and workers in the gig economy, those who have not contributed to the EPF for a period of time, have lost their jobs, are homemakers, or are not on pay leave.
The criteria for Category 1 are as follows:
- Members who have not contributed to the EPF for at least two (2) consecutive months on the application; or
- Members who are still working but have had their base salary reduced by 30% or more as of March 1, 2020.
For this category, no supporting documents are required and approval is automatic based on internal EPF data. Members will only need to apply online through isinar.kwsp.gov.my beginning December 21, 2020.
Payment for eligible members of this category will be made from mid-January 2021.
Category 2
This category includes members whose total income has been reduced by 30% or more (total income that includes base salary and other benefits such as allowances and overtime) as of March 1, 2020, so such reduction only it can be verified with supporting documents.
To expedite the verification process, the HBS will require supporting documents from members as follows:
- Wage slippage before and after income reduction; Y
- Employer notice of suspension or reduction of assignments and / or overtime claims.
For members who are unable to provide the supporting documents as mentioned above, other relevant supporting documents such as a bank statement or a written acknowledgment from the employer will be given due consideration.
Members who fall into this category can start applying online at isinar.kwsp.gov.my starting January 11, 2021.
To ensure proper attention is given to requests, members’ request status will be notified to members within two to three weeks after the request is submitted. Payment will be made before the end of the following month, once the application is approved.
Sinar Eligible Amount
The amount eligible for i-Sinar is subject to the member’s Account 1 balance, as per the latest details below:
- For those with RM100,000 or less in Account 1, they can withdraw any amount up to RM10,000. Payments will be staggered over a maximum period of six months with the first payment up to RM5,000.
- For those who have more than RM100,000 in Account 1, they can withdraw a maximum of 10% of their savings from Account 1, up to RM60,000 (whichever is less). Payments will be staggered over a maximum period of six months with the first payment up to RM 10,000.
To illustrate:
To ensure a smooth application process, members registering with i-Akaun are encouraged to update their mobile phone number to receive the Transaction Authorization Code (TAC) at the EPF kiosk or counter, as well as make sure your bank account number is active.
The Employee Provident Fund is a statutory federal body that administers the mandatory savings plan and retirement planning for private sector workers in Malaysia.
