Remove conditions on Account 1 withdrawal, Zahid urges EPF

Umno president Ahmad Zahid Hamidi has urged the Employees Provident Fund to make it easier for contributors to make a one-off withdrawal of RM10,000 by not imposing any conditions.

He said at a time when the people were badly affected by the Covid-19 crisis, it was only appropriate for EPF to facilitate withdrawals and be sensitive to the needs of their members.

“I hear and read about all the grouses of the people who are disappointed with the conditions imposed by EPF for withdrawals from Account 1 under i-Sinar,” he said in a statement today.

Zahid said Barisan Nasional and Umno MPs had been firm in championing the issues of withdrawal from Account 1 raised by the people.

On Wednesday, EPF announced two categories of contributors who are eligible to make the withdrawal.

Category I comprising workers in the formal sector; self-employed; workers in the informal economy; members who have not contributed for a long time; who have lost their jobs; housewives or members given notice of unpaid leave.

Members must not have made contributions to EPF for at least two consecutive months at the time of application; or members who are still working but have suffered a basic pay cut of at least 30% after March.

For this category, no supporting documents are required; approval is automatic based on EPF’s internal data and members only need to apply online via isinar.kwsp.gov.my beginning Dec 21.

Category II is for members who are still working but have suffered an overall drop of at least 30% in income, including salary and allowance cut, or cut in overtime claims, after March, and such deductions can only be identified through documents provided.