KUALA LUMPUR: The Employees Provident Fund (EPF) clarified that contributors applying for an advance from their Account 1 under the i-Sinar facility will have to replace the amount with future contributions.
This replacement would be done, where 100% of the new contribution would be first deposited into Account 1, a statement from EPF said.
Once the total amount accessed from i-Sinar is completely replaced, the contribution distribution rate will return to normal at 70% (Account 1) and 30% (Account 2).
The statement was in response to a social media message stating that “members need to repay the i-Sinar advance facility from the EPF”. “The social media message is “not true”, EPF said.
EPF also said the terms being used by the media such as “repayment” and “later payment” are inaccurate and has caused confusion to many, especially EPF members who want to apply for this i-Sinar facility.
The correct term is replacement. This replacement amount will only be received from future member contributions and not in cash payments from members who use the i-Sinar facility, the statement said.
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