KUALA LUMPUR, Nov 6 ― The government will allow a monthly withdrawal of RM500 from Account 1 of the Employees’ Provident Fund (EPF) to assist those who have lost their jobs due to the Covid-19 pandemic, Finance Minister Datuk Seri Tengku Zafrul Abdul Aziz announced today.

In his Budget 2021 speech, Tengku Zafrul said a withdrawal of up to RM6,000 for a period of 12 months is aimed at alleviating financial hardship faced amongst its 600,000 members.

“It is projected that the overall payment for the Account 1 withdrawal will involve RM4 billion. Eligible members can start applying from January 2021 onwards,” he said.

Account 1 consists of 70 per cent of workers’ contribution and is specifically meant for their retirement.

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Earlier today, Tengku Zafrul also said the minimum employee EPF contribution rate will be reduced from 11 to 9 per cent for a period of 12 months beginning January 2021, with the move aimed at increasing take-home pay.

Tengku Zafrul’s latest announcement is in addition to an earlier announcement made in March where contributors can withdraw up to RM500 monthly for a period of 12 months from their Account 2 through EPF’s i-Lestari withdrawal facility.

The initiative, introduced in April, was meant to ease the financial burden of EPF members and help them meet their basic monthly financial needs during the Covid-19 pandemic.

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“Taking into account both i-Lestari and this Account 1 withdrawal facility, the total allowed withdrawal will be up to RM12,000,” Tengku Zafrul added.

In addition, he also said EPF will allow members to withdraw from their Account 2 to purchase insurance and takaful products which are approved by EPF relating to life and critical illnesses coverage for themselves and their families.