In a statement by EPF, it stated the application for the withdrawal could be made next month.
The first payment will be made in January.
EPF’s announcement will supersede the Budget 2021 proposal where some 600,000 members can withdraw RM500 a month of up to RM6,000 over 12 months from Account 1.
EPF said i-Sinar would benefit two million eligible members with an estimated RM14bil payment to be made under the scheme.
The facility would cover active members who have lost their jobs, given no-pay leave or have no other source of income, it said.
“The first payment will be made in January 2021. Advances will be made over a period of six months from the first date of credit,” it said.
It stated that those who have RM90,000 and below in Account 1 could access up to RM9,000 or 10% of their saving with the first advance payment of up to RM4,000.
The remaining balance will be paid in the following five months.
The minimum qualification for EPF members to access this facility is that they must have a minimum saving of RM4,500 in Account 1.
For those who have above RM90,000 in Account 1, EPF said they could withdraw 10% of their saving up to a maximum sum of RM60,000.
EPF said members who chose to apply for the facility would be required to replace the full amount.
“Members who choose to apply for the facility will be required to replace the full amount advanced. All future contributions will be 100% credited to Account 1 until the amount advanced is replenished,” it said in the statement.
Did you find this article insightful?
69% readers found this article insightful