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Andrew Lo
KUCHING (December 4): Malaysian Trade Union Congress (MTUC) Sarawak objects to the federal government’s move to allow contributors to the Employee Provident Fund (EPF) to withdraw their savings to combat difficulties stemming from the Covid-19 pandemic .
His secretary Andrew Lo said that the savings in the EPF Account 1 were supposed to be his provisions during his retirement days.
“We should all feel ashamed that in 2020, the year we are supposed to be in a fully developed nation, workers are so desperate that they have to resort to investing in their retirement savings to survive,” he told Utusan Borneo today.
“It is a shame for the government, parliamentarians and politicians who demand this facility,” he added.
He said that the federal government should have disbursed more funds from its coffers rather than starting the I-Sinar Scheme simply to allow EPF taxpayers to drain their savings.
“We are cutting our nose to screw up our faces. Never touch retirement savings; allocate more funds from the federal budget. Issue long-term bonds. Taxing windfall profits from companies like Top Glove that are benefiting from the pandemic, ”he lamented.
The I-Sinar Scheme would affect 8 million taxpayers, particularly those who lost their jobs or suffered monthly pay cuts following the unprecedented economic recession caused by the Covid-19 pandemic situation.
On Wednesday, EPF told Bernama that these 8 million eligible taxpayers fall into two categories.
The first category encompasses taxpayers employed in the formal economy or concert sectors; those who are self-employed or have not contributed for a long time; Housewives; as well as those who have lost their job or taken leave without pay.
Members who have not contributed for at least two consecutive months or more at the time of application, or those who are still employed but facing base salary cuts of 30 percent or more after March 1 of this year, are eligible to apply for the service.
“Those in this category do not have to provide supporting documents, as approval is automatic and is based on internal EPF data. They only need to apply online from December 21, 2020, ”he said.
Payments would be made from mid-January next year.
The second category comprises members who are still employed but who face a reduction of 30 percent or more of their total income, which includes wages, allowance and overtime pay, after March 1 of this year, which is only you can verify through supporting documents.
“To facilitate the verification process, EPF will require supporting documents from the applicants, that is, receipt of payment indicating the reduction of the previous and subsequent payment, notice of leave without pay or notice of termination / reduction of subsidy and / or overtime claims.
“If the documents are not available, EPF will consider other relevant supporting documents such as bank statements or confirmation letters from employers,” he said, adding that those who fall into this category can apply online from January 11. of the next year.
The EPF said members can check the status of their application within two to three weeks after it is submitted, and payments to selected applicants will be made before the end of the following month.
He said that members with 100,000 ringgit or less in their account 1 can withdraw up to 10,000 ringgit.
Payments will be made to applicants in stages over a maximum period of six months, with a first withdrawal of up to RM5,000.
Meanwhile, those with more than RM100,000 in their Account 1 can make a maximum withdrawal of 10 percent of the amount in their account, or RM60,000 (whichever is less).
Staggered payments will be made to applicants for a maximum period of six months, with a first withdrawal of up to RM10,000, it said.
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