How to Apply i-Sinar EPF Malaysia to Withdraw from Account 1 EPF?
i-Sinar EPF is an initiative taken by the EPF Malaysia and the government under Budget 2021 to cover active members who face deep financial hardship for six months. A total estimated value of RM70 bil to be made available for withdrawals. The i-Sinar facility is an extension of the i-Lestari programme which allows withdrawal of up to RM500 a month from Account 2 slated to end in March next year.
More than 8 million members will be able to apply to withdraw funds from their Employee’s Provident Fund (EPF) Account 1 from next month under the EPF i-Sinar programme. The idea is that this will help those who have been impacted by the prolonged pandemic to make ends meet.
However, it is important to note that this is not a withdrawal. EPF Malaysia considers this an advance on your future retirement payments and expects you to replace the funds that you have received.
Who Eligible to Apply for i-Sinar EPF Programme?
As announced by EPF earlier, the i-Sinar program is targeted at workers that have lost their jobs or have suffered a salary reduction of at least 30%.
Category 1
- Members who have not contributed to EPF for at least two consecutive months; OR
- Members who are still working but suffer a reduction of their base salary by 30% and above from March 2020 onwards.
The approval will be done automatically based on EPF’s internal data.Â
Category 2.
- Members whose total income has been reduced by 30% and above (total income including base salary and other benefits such as allowances and overtime) from March onwards
For those who can only prove their reduction of salary with additional supporting documents, you’ll have to wait until 11th January for the Category 2 submission. For those who didn’t suffer a 30% pay cut but interested in making a withdrawal from Account 1 are still encouraged to apply under category 2.
You will have to go through a verification process based on your supporting documents. You will be notified of the status of your application between 2-3 weeks after applying.
What document needs to apply i-Sinar EPF Programme?
The documents required depends on what category of applicant you fall in. For Category 1 applicants, you don’t need to produce any supporting documents, but Category 2 applicants need to.
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| Â | Category 1 | Category 2 |
| Documents required | None | ·      Salary slip before and after reduction of income; AND ·      Employer’s notice of suspension or reduction of allowances and/or overtime claims. |
How much can be withdraw from i-Sinar EPF Programme?
For members with Account 1 savings balance of RM100,000 or less, you can only withdraw up to a maximum of RM10,000 and it will be staggered across 6 months. Once approved, you can receive up to RM5,000 for the first payout and it will be credited the following month after submission and approval.
If you have more than RM100,000 in Account 1, you may take out 10% of the current balance with a maximum cap of RM60,000. The first payout is up to RM10,000 and the remaining balance will be staggered across the next 5 months. If your application is submitted and approved in December, you will receive the first payout in January 2021.
For members with Account 1 balance of over RM100,000, it is possible to receive all funds in less than 6 months if the withdrawal amount is small. If you’re only applying to take out RM10,000, you are able to get everything in one month since you’re eligible to receive up to RM10,000 in the first payout.
| Account 1 savings RM100,000 and below | Account 1 savings above RM100,000 |
Maximum withdrawal of RM10,000 (subject to RM100 remaining balance at all times) | Maximum withdrawal of 10% of Account 1 savings (capped at RM60,000) |
| First month advance of up to RM5,000 | First month advance of up to RM10,000 |
Example: Balance in Account 1: RM4,500 Total maximum withdrawal: RM4,400* First-month payment: RM4,400 Balance in Account 1: RM10,000 Total maximum withdrawal: RM9,900 First-month payment: RM5,000 Balance in Account 1: RM70,000 Total maximum withdrawal: RM10,000 First-month payment: RM5,000 Balance in Account 1: RM100,000 Total maximum withdrawal: RM10,000 First-month payment: RM5,000 | Example: Balance in Account 1: RM100,001 Total maximum withdrawal: RM10,000 First-month payment: RM10,000 Balance in Account 1: RM500,000 Total maximum withdrawal: RM50,000 First-month payment: RM10,000 Balance in Account 1: RM800,000 Total maximum withdrawal: RM60,000 First-month payment: RM10,000 |
How to apply i-Sinar EPF Programme?
Applications for i-Sinar EPF will begin in December 2020 and must be made at iSinar Online. The money will be credited into the members’ accounts by the end of the month following their i-Sinar EPF application. Since it will begin in 21 December 2020, the first crediting will take place in January 2021. Advances will be made over six (6) months from the first date of credit.
Once you hit submit, you’ll receive a confirmation that your application has been received. If you apply today, the portal will ask you to check back on the status from the 4th of January 2021.
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