EPF outlines two categories eligible for i-Sinar withdrawals
The Employees Provident Fund (EPF) has outlined two categories of contributors eligible to withdraw funds through its i-Sinar facility, which is being implemented in response to the Covid-19 pandemic’s economic impact.
This came just a week after Finance Minister Tengku Zafrul Abdul Aziz conceded to Umno’s demands to expand the programme despite concerns that it could undermine EPF members’ long-term financial security...
The Employees Provident Fund (EPF) has outlined two categories of contributors eligible to withdraw funds through its i-Sinar facility, which is being implemented in response to the Covid-19 pandemic’s economic impact.
This came just a week after Finance Minister Tengku Zafrul Abdul Aziz conceded to Umno’s demands to expand the programme despite concerns that it could undermine EPF members’ long-term financial security.
According to the EPF, eligible members can make withdrawals from their Account 1 based on the balance in their accounts.
Those with RM100,000 and below in their Account 1 can withdraw any amount up to RM10,000, and payments will be staggered over a period of up to six months with the first payment being up to RM5,000.
For members with more than RM100,000 in their account, they can withdraw up to 10 percent of their Account 1 savings, or up to RM60,000 (whichever is lower). Payments will be staggered over a period of up to six months with the first payment being up to RM10,000.
“To ensure the application process is smooth, members are advised to register for i-Akaun, update their mobile number to receive the Transaction Authorisation Code (TAC) at an EPF kiosk or counter, as well as ensure that their bank account number is active,” it said in a statement today.
For the two categories of members eligible for i-Sinar, the EPF said Category 1 members are those who have not contributed to the EPF for at least two consecutive months at the time of the application, or are still working but have suffered a reduction of their base salary by at least 30 percent from March 1 onwards.
For Category 1 members, approval for i-Sinar withdrawals would be automatic based on EPF’s internal data and no supporting documents are needed.
Members would only need to apply online through EPF’s i-Sinar website beginning Dec 21, and payments will be made from mid-January next year.
Meanwhile, Category 2 members are those whose total income has been reduced by 30 percent and above including their base salaries, allowances, and other benefits, from March 1 onwards.
In such cases, the EPF said supporting documents will be required for verification.
The required documents are salary slips before and after the reduction of income, and their employer’s notice of suspension or reduction of allowances and/or overtime claims.
“For members who are not able to provide the supporting documents as mentioned above, other relevant supporting documents such as bank statement or employer’s written acknowledgement will be given due consideration,” it added.
Category 2 members may submit their applications to withdraw funds from their accounts via the i-Sinar website beginning Jan 11 next year.
Members will be informed of their application status within two to three weeks, and if it is approved, payments will be made before the end of the following month.
