i-Sinar: EPF Allows Account 1 Withdrawal Up To RM60,000. Here’s How

You can withdraw up to RM10,000 in the first month.

Subscribe to our Telegram channel for the latest stories and updates

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

With the announcement, i-Sinar will benefit 2 million eligible members and result in a total estimated value of RM14 billion to be made available. Originally it was 600,000.

Know your category

EPF has underlined 2 categories of members who are eligible for i-Sinar.

Category 1

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.

Category 2

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.

Share your thoughts with us on TRP’s Facebook, Twitter, and Instagram.