Main Image via The Star

About 2-million eligible contributors can now withdraw a maximum between RM9,000  and RM60,000 from Account 1 in the Employees Provident Fund (EPF) under i-Sinar.

After a thorough study and assessment by the fund, the EPF has taken the step to widen the scope of i-Sinar to cover active members who have lost their jobs, given no-pay leave, or have no other source of income.

Eligible members will be able to start applying for withdrawals from December onwards, and the funds will be credited beginning January 2021.

Generally, eligible members will have access to 10% of their savings in Account 1, subject to always having a minimum balance of RM100:

For those who have RM90,000 and below (Account 1), they have access to any amount up to RM9,000. The amount advanced will be staggered over a period of six (6) months with an increased first advance of up to RM4,000.

For those who have above RM90,000 (Account 1), they have access of up to 10% of their Account 1 savings. However, the maximum total amount allowed to be advanced is RM60,000. The amount advanced will be staggered over a period of six (6) months with an increased first advance of up to RM10,000.

Members who choose to apply for the i-Sinar facility will be required to replace the full amount advanced. All future contributions will be 100% credited to Account 1 until such time the amount advanced is replenished. Thereafter, contributions will revert to 70% to Account 1 and 30% to Account 2.

To determine the right amount to be applied under i-Sinar and ensure sustainability during the crisis, members are strongly urged to first seek financial advice from EPF’s Retirement Advisory Services (RAS) and/or the Credit Counseling and Debt Management Agency (AKPK).

Info via The Star

Written By Thineshkan