EPF Account 1 withdrawal expanded to those with reduced income

28-Nov-2020 Intellasia | Malaysiakini | 6:02 AM Print This Post

The government has expanded the withdrawal from Account 1 of the Employees Provident Fund (EPF) to those whose income was reduced this year.

Finance minister Tengku Zafrul Abdul Aziz said this included those who experienced salary cuts or are no longer able to generate additional income by working overtime.

Those who are no longer active contributors or working in informal sectors that have been affected by the economic downturn from Covid-19, are also eligible to make withdrawals.

Contributors who were allowed to withdraw up to RM9,000 previously, are now allowed to withdraw up to RM10,000.

“Just show proof that you have lost your job, been placed on unpaid leave, had salaries or allowances or overtime slashed, or income reduced if you are self-employed,” Zafrul said in the Dewan Rakyat this afternoon.

His announcement was met with table thumping from lawmakers who supported the move.

The amendment came after Umno pressured the government to expand EPF Account 1 withdrawals.

However, the government has maintained the status quo for loan moratorium extensionsnot ceding to calls for it to automatically be applied to all.

Currently, the government offers a deferment or reduced payment for those whose income or jobs have been affected by the Covid-19 pandemic.

Other additional assistance announced included a one-off RM300 assistance for all Covid-19 frontliners, which is an extension of a RM500 aid under Budget 2021 for health ministry staff.

Zafrul noted that the request for the one-off aid to be expanded to police, immigration, People’s Volunteer Corps (Rela) and other frontliners had been raised by various MPs throughout their debates.

Meanwhile, Zafrul said the government has allocated an additional RM50 million in funds for Sabah, in light of the spike in Covid-19 cases.

Government MPs largely lauded the announcements with Abdul Azeez Rahim (BN-Baling) describing it as a “7-0 score” with all their demands fulfilled.

Others from the opposition including Wong Chen (Harapan-Subang), however, urged for caution over the EPF withdrawal approval, citing the estimated outflow of around RM70 billion versus a RM20 billion inflow.

The finance minister, however, said the figure was inaccurate as the EPF has a projected inflow of RM80 billion a year.

https://sg.news.yahoo.com/epf-account-1-withdrawal-expanded-064700299.html

 

Category: Malaysia

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