Previously, we were shocked by the complaints and appeals of the people who applied for the government to allow the withdrawal of the EPF account 1 as a result of the effects of the Covid-19 transmission which affected their income.
Based on a statement, the Employees Provident Fund (EPF) has already made a division of 2 categories involving contributors who are eligible to access the i-Sinar facility. Surely many are already looking forward to this announcement!
For Category 1, eligible contributors include individuals who work in the formal sector, self-employed, work in the gig economic sector, individuals who do not contribute for a long period of time, lose their jobs, housewives or are given notice of unpaid leave.
In addition, individuals who have not contributed to the EPF for at least 2 consecutive months at the time of application, or who are still working but have been given a basic salary deduction of 30% and above after 1 March 2020 are also included in category 1.
In addition, it does not require supporting documents and the approval given is automatically based on the EPF's internal data. However, those involved need to apply through isinar.kwsp.gov.my starting 21 December 2020. Meanwhile, payment for qualified individuals will start from mid-January 2021.
Subsequently, Category 2 involves individuals who are still employed but overall income has been affected by 30% and above including deductions of salaries and allowances, or deductions of overtime claims after 1 March 2020.
Meanwhile, contributors will need to submit supporting documents for the verification process, such as salary slips before and after the income cut and notice of termination or deduction of allowances or overtime claims. However, if no documents are submitted, other support including bank statements or employer confirmation letters will be considered.
In addition, applications for this category can be made through isinar.kwsp.gov.my from 11 January 2021.
Not only that! The status of the application will be informed to the contributor within 2 to 3 weeks after the application is made. While payment will be made before the end of the next month, after approval is given.
The fact is, the total eligibility of i-Sinar depends on the balance of the contributor's Account 1 savings based on the latest data. For example, a contributor who has RM100,000 and below in Account 1, they can only withdraw up to a maximum amount of RM10,000.
Payment in stages will be made within a maximum period of 6 months with the first payment up to a maximum amount of RM5,000.
While a contributor who has a balance of more than RM100,000 in Account 1, they can withdraw a maximum amount of 10% or RM60,000 which is a lower amount than Account 1.
Payment will also be made in stages within a maximum period of 6 months with the first payment up to RM10,000.
Finally, contributors are encouraged to register for i-Akaun, update their mobile phone number for the Transaction Authorization Code (TAC) acceptance process at the EPF kiosk or counter, and ensure their bank account number is active to ensure the application process runs smoothly.
