Criteria for i-Sinar announced


While EPF makes it easy for members, saying not everyone needs supporting documents to withdraw from Account 1, financial experts are cautioning contributors against keeping their nest egg depleted for long. Replenish it when the dust has settled, they say.

PUTRAJAYA: The Employees Provident Fund (EPF) announced the criteria for i-Sinar application, dividing those eligible into two distinct categories.

Under Category 1 are members who have not contributed to EPF for at least two consecutive months on application or are still working but have suffered a reduction of 30% or more in their base salary from last March.

“For this category, applicants need not submit supporting documents as approval is automatic based on EPF’s internal data. Members will only need to apply online beginning Dec 21, ” it said in a statement.

Eligible members under this category include those working in the formal sector or gig economy and self-employed, as well as those who have lost their jobs, housewives or given no pay leave.

Payment will start from the middle of January next year.

Members whose total income – including base salary and other benefits such as allowances and overtime – has been reduced by 30% will fall under Category 2.

As the reduction cannot be verified without supporting documents, they are required to submit their salary slip before and after reduction of income, and employer’s notice of suspension or reduction of allowances and/or overtime claims to expedite the process.

“For members who are unable to provide the mentioned supporting documents, other relevant supporting documents such as bank statements or employer’s written acknowledgement will be given due consideration, ” the EPF statement read.

Members who fall under this category can start applying online beginning Jan 11 next year, and they will be notified of their application status within two to three weeks after submission.

Payment will start before the end of the following month, after the application is approved.

EPF said the eligible amount for i-Sinar was subjected to the member’s Account 1 balance.

Those with RM100,000 and below can withdraw any amount up to RM10,000, and the payments will be staggered over a maximum period of six months and the first payment will be up to RM5,000.

Members with more than RM100,000 can withdraw a maximum of 10% of their savings in Account 1 or up to RM60,000, whichever is lower.

Payments will be staggered over a maximum period of six months and the first payment will be up to RM10,000.

“To ensure the application process is smooth, members are advised to register for i-Akaun, update their mobile number at an EPF kiosk or counter to receive the Transaction Authorisation Code (TAC), as well as ensure that their bank account number is active, ” said EPF.

Application for i-Sinar, which is expected to benefit up to eight million members, can be done via isinar.kwsp.gov.my.

During the tabling of Budget 2021, the government had announced that it would allow those who had lost their jobs or had their income reduced as a result of the Covid-19 pandemic to withdraw from their EPF Account 1.

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epf , i-sinar , covid19

   

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