[ad_1]
KUALA LUMPUR: Members of the Employee Provident Fund (EPF) can now withdraw up to RM10,000 from their Account 1.
Finance Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz said the i-Sinar facility has now been expanded to all EPF members who lost their jobs or whose income suffered due to the pandemic.
“It doesn’t matter if they are members of the formal sector or self-employed, active contributing members or otherwise, as long as their income has been greatly affected, they can withdraw from the savings of Account 1.
“Currently, only two million members qualify for the i-Sinar installation, but now it has expanded to more than eight million members.
“Other than that, each member was only allowed to withdraw up to RM9,000, but now they can withdraw up to RM10,000,” said Tengku Zafrul in his closing speech on Budget 2021.
This was met with thunderous bangs on the table by legislators who were happy with the announcement.
Tengku Zafrul said those affected should apply online or go to the nearest EPF office and show proof of their job loss, notice of unpaid leave, claims for reduced salary, subsidy or overtime, or even reduction of income if they were self-employed.
The senator explained that EPF was created in 1951 for members as a safety net for their golden years.
“As such, every sudden withdrawal needs careful scrutiny and consideration.
“The issues related to EPF Account 1 are about finding the right balance between meeting two different member needs.
Thumbs Up: Prime Minister Tan Sri Muhyiddin Yassin (third from right) sharing a moment of light with Tengku Zafrul (second from left) as other cabinet ministers watch. – Bernama
“The first is to ensure the continuity of their daily livelihood and, second, to ensure their retirement in the future,” said Tengku Zafrul.
He said many, including lawmakers, had requested a one-time lump sum withdrawal.
He said that the voices of Internet users on social networks were also taken into account.
However, the government was also aware of reports of complaints from some members of the EPF that its dividends and the growth of its funds would suffer due to large withdrawals by other members.
Tengku Zafrul added that even in March, at the height of the Covid-19 pandemic, the government had first allowed the withdrawal of up to RM6,000 from Account 2 of the
EPF through the i-Lestari program, which benefited 4.7 million rakyat.
“Although the government was later criticized for the initiative, I must emphasize that the government is receptive and will act appropriately for the improvement of the rakyat, without renouncing other responsibilities,” he said.
Earlier this month, Tengku Zafrul said that the i-Sinar program was introduced allowing up to 600,000 EPF members to withdraw up to RM6,000 from their Account 1, but was later expanded to two million active members who were allowed withdraw until RM9. , 000, subject to terms and conditions.
“The government remains sensitive to complaints from members and parliamentarians who insisted on the strict conditions imposed on withdrawal.
“Some complained that they did not lose their jobs, but had their salary, allowance or overtime cut and that took a toll on their ability to support their families, or some members who have not contributed for years but still have their savings. as such, they were not eligible to run.
“The government heard all this,” he said.
Tengku Zafrul recalled that each EPF withdrawal must be done with full responsibility, as it is a collective responsibility of all members.
He also said that it was the government’s responsibility to find the balance between today’s needs and future retirement security for EPF members.
[ad_2]
