GEORGE TOWN – Contributors to the Employees Provident Fund (EPF) will be allowed to withdraw RM500 a month from Account 1 starting next year.
The total withdrawal sum is capped at RM6,000 for 2021.
Finance Minister Datuk Seri Tengku Zafrul Tengku Abdul Aziz, tabling Budget 2021 today, said this facility, coupled with the i-Lestari initiative initiated by EPF in April that allows members to make withdrawals of RM500 per month for 12 months, allows contributors to make a total withdrawal of RM12,000 next year.
It is projected that the total issuance of Account 1 will amount to RM4 billion.
Eligible members can apply in January.
The minimum EPF contribution for individuals will be reduced to 9% from 11% starting January, for a period of 12 months.
This aims to increase people’s disposable income or take-home pay, and will benefit EPF contributors to the tune of RM9.3 billion.
Because many Malaysians do not own life insurance, EPF will allow its members to make withdrawals from Account 2 to buy such insurance and takaful coverage products, said Tengku Zafrul. – The Vibes, November 6, 2020
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