Budget 2021: EPF Cuts From 11% To 9%, RM500 Monthly Withdrawal From Account 1 Allowed
He said it’ll benefit 600,000 members affected by Covid-19.
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To encourage Malaysians to spend, the Finance Ministry in the 2021 Budget announced that Employees Provident Fund (EPF) contributions will be cut from 11% to 9% from January 2021.
Finance Minister Datuk Seri Tengku Zafrul Aziz said the cut will be applicable for 12 months to increase disposable income of Malaysians by RM9.3 billion.
The government has also allowed for contributors to take out RM500 per month out of their Account 1 savings for the span of 12 months, for a total of RM6,000.
This is to help contributors who have lost their jobs to find their footing and Tengku Zafrul added that this will benefit 600,000 members who are affected by the pandemic.
Along with i-Lestari, Tengku Zafrul said contributors will stand to receive around RM12,000.
Contributors can also use their Account 2 to purchase insurance and takaful products which are approved by EPF for themselves or their families.
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