All new EPF contributions to be credited into Account 1

KUALA LUMPUR: All new Employees Provident Fund (EPF) contributions of members who had made withdrawals to weather the economic effects due to Covid-19 will be credited into Account 1.

Deputy Finance Minister Mohd Sahar Abdullah said this would continue until the total amount withdrawn had been replenished.

“Only after that will 70% of the contributions be credited into Account 1 and 30% into Account 2.

“This is the government’s initiative to increase the savings of members who had made withdrawals through the i-Sinar and i-Citra schemes to ease their burden following the impact of the Covid-19 pandemic,” he said at Dewan Rakyat yesterday.

Mohd Sahar was answering a supplementary question by PAS Tumpat MP Datuk Che Abdullah Mat Nawi on the government’s efforts to ensure EPF savings in Account 1 was sufficient for contributors to tide things over after retirement.

He said a total of RM101bil had been withdrawn under the i-Lestari, i-Sinar and i-Citra initiatives.

He added that the government would continue to study other methods to ensure the people’s retirement social safety net could return to the proper levels.

“There are several measures to ensure retirement savings do not dwindle; among them is the rule that allows members to make monthly withdrawals so they can enjoy dividends on their savings.

“Another is where employers are required to contribute 4% of the monthly salary of those above 60,” he said.