The Employees’ Provident Fund (EPF) has announced the criteria and details regarding the i-Sinar withdrawal facility, which has been further expanded to cover some eight million eligible contributors.
In a statement today, it said eligible contributors are divided into two categories.
Contributors who are self-employed or have not contributed for a long time can withdraw money from their EPF Account 1
It is said the first category encompasses contributors employed in the formal or gig economy sectors. Meaning, those who are self-employed or have not contributed for a long time, housewives and those who have lost their jobs or been put on unpaid leave.
Furthermore, members who have not contributed for at least 2 consecutive months or more at the time of application to those who are still employed but facing basic salary cuts of 30% or more after March 1, 2020 are eligible to apply for the facility provided by the government.
Members only need to apply via online
According to EPF, those fall under the categories mentioned above don’t have to provide supporting documents as the approval is automatic based on EPF’s internal data.
Affected members only need to apply online via isinar.kwsp.gov.my starting Dec 21, 2020. The payments would be made starting from mid-January next year.
Contributors who are facing a reduction of 30% or more of their total earnings can withdraw money from their EPF Account 1
In addition, the second category comprises members who are still employed but facing a reduction of 30% or more of their total earnings. This includes salaries, allowance an overtime pay after March 1, 2020
For the affected members under this category, they need to provide supporting documents namely, payslip stating pre and post-pay reduction, unpaid leave notice or termination notice/allowance cut and/or overtime claims.
Members need to submit relevant documents to apply
If the documents mentioned above are not available, EPF will consider other relevant supporting documents like bank statements or confirmation letter from employers. Those who fall under this category may submit their application online starting Jan 11, 2021.
Members may check their application status within 2-3 weeks after their submission and payments to successful applicants will be made before the end of the following month.
How much can you withdraw from your Account 1?
According to EPF, members with RM100,000 or less in their Account 1 are allowed to withdraw up to RM10,000. Payments will be made in stages – whereby the first withdrawal will be up to RM5,000 and the following payments will be made in a maximum period of 6 months.
Meanwhile, those members with more than RM100,000 in their Account 1 are able to make a maximum withdrawal of 10% of the amount in their account or RM60,000 whichever is lower.
Payments will be made to applicants in stages for a maximum period of six months – with a first withdrawal of up to RM10,000.