EPF contributions now credited into Account 1 to replenish savings - deputy minister
For Employees Provident Fund (EPF) members who made withdrawals through i-Sinar and i-Citra, all their new contributions will now be credited into their EPF Account 1.
Their EPF contributions will be channeled into Account 1 until the total amount of what they withdrew previously is replenished, said Deputy Finance Minister I Mohd Shahar Abdullah.
After the amount is replenished...
For Employees Provident Fund (EPF) members who made withdrawals through i-Sinar and i-Citra, all their new contributions will now be credited into their EPF Account 1.
Their EPF contributions will be channeled into Account 1 until the total amount of what they withdrew previously is replenished, said Deputy Finance Minister I Mohd Shahar Abdullah.
After the amount is replenished, 70 percent of their contributions will be credited to Account 1 and 30 percent to Account 2, he said.
Withdrawals from Account 1 may only be done if contributors reach retirement age, are incapacitated, leave the country, or pass away.
Withdrawals from Account 2 are permitted for first house purchase, education, medical expenses, and investments.
"This is the government's effort to increase the savings of members who made withdrawals through the i-Sinar and i-Citra schemes to ease their burden following the impact of the Covid-19 pandemic,” he said.
He was speaking during the question and answer session at the Dewan Rakyat today.
Shahar said currently, only 27 percent of active EPF members between 18 and 55 had savings in Account 1 that exceeded the basic savings quantum according to age.
He was answering a supplementary question by Che Abdullah Mat Nawi (PAS-Tumpat) on the government's efforts to ensure EPF savings in Account 1 are sufficient for contributors to retire with.
Earlier, Shahar told the Dewan Rakyat that the government would also study other methods to ensure the people's retirement social safety net could return to the proper level.
- Bernama
