You can withdraw up to RM10,000 in the first month.
The Employees Provident Fund (EPF) has will open registrations for i-Sinar starting 21 December.
According to reports, i-Sinar allows EPF members to withdraw funds from Account 1 that is usually only accessible once members turn 55 years old.
It is an extension of the previous i-Lestari Account 2 withdrawal programme that ends in March 2021
Know your category
The criteria for Category 1 are as follows:
- Members who have no contribution with the EPF for at least 2 consecutive months during the application.
- Members who are still working but have experienced a basic salary reduction of 30% and above after 1 March 2020.
For this category:
- No supporting documents will be required
- Automatic approval based on EPF internal data
- Members only need to apply online through via their i-Sinar website.
Payment for eligible members will begin from mid-January 2021.
This category is for members who are still employed but experience a reduction in overall income of 30% and above (including reduction of salaries and allowances, or deduction of overtime work claims) after March 1, 2020.
Do note that you’ll need to have supporting documents to apply:
- Salary slip before and after income reduction
- Notice of termination or deduction of allowances and / or overtime claims.
If you don’t have any of those documents, EPF said any other supporting documents such as bank statements or employer confirmation letters will be considered.
For category 2, applications for i-Sinar can be made online starting 11 January 2021.
EPF said members will notified about the status of their application within two to three weeks after they’ve applied.
Payment will be made before the end of the following month after the approval is given.
How it works
EPF said eligible members can start applying from 21 December 2020.
The funds will be credited by the end of the month following their i-Sinar application and the first crediting will start in January 2021.
Advances will be made over a period of six (6) months from the first date of crediting.
How much you can take out depends on the amount that you have in your Account 1.
Recently, the government made changes to the amount and have allowed withdrawals of up to RM10,000.
Here’s the updates:
Members with a balance of RM100,000 and below in Account 1
- Can make withdrawals up to a maximum of RM10,000.
- Payment will be made in stages within a maximum period of six (6) months
- First payment up to a maximum amount of RM5,000.
Members with a balance of more than RM100,000 in Account 1
- Can make a maximum withdrawal of 10% or RM60,000 (whichever is lower).
- Payment will be made in stages over a maximum of six (6) months
- First payment of up to RM10,000.
BUT, you have to put the money back later
EPF said that members who want to apply for the i-Sinar facility will be required to replace the full amount advanced.
They added that all future contributions will be 100% credited to Account 1 until the amount is given back. After that, contributions will revert to the original distribution of 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 Counselling and Debt Management Agency (AKPK).Employees Provident Fund
The Employees Provident Fund (EPF) also denied that members had to repay the i-Sinar advance facility from Account 1.
Instead, the EPF said that the amount paid from Account 1 would be replaced with member contributions in the future.
Unkempt in both stories and appearance, Hakim loves tech but tech left him on read, previously he used to write about tall buildings and unoccupied spaces that he canâ€™t afford, and legend has it that he still canâ€™t afford it to this day