Monday, March 23, 2020

EPF subscribers allowed to make RM500 monthly withdrawal for 12 months

PUTRAJAYA: Subscribers of the Employees Provident Fund (EPF) who are aged below 55 are allowed to make withdrawals from their Account 2 beginning April 1 to ease the burden of those affected by the COVID-19 outbreak.

Prime Minister Tan Sri Muhyiddin Yassin said the i-Lestari withdrawal initiative is expected to benefit up to 12 million EPF members, with an estimated total withdrawal of RM40 billion. 

Through this facility, all EPF members aged below 55 can withdraw their savings in their Account 2 to a maximum of RM500 a month for 12 months, he told a media conference here today.

"I hope this initiative, as well as the reduction of four percent in the employee’s contribution, effective April 2020,  will enable workers to have more money in their pockets to buy daily necessities,” he added.

Muhyiddin also advised those who would benefit from the initiative to use wisely the money they were to withdraw from EPF.

"Buy only necessary items during these difficult times. Most importantly, make sure there is food on the table for the family," he added.

He said a portion of the money could be spent to pay utility bills and house rentals, depending on their needs.

“Although the amount is not much, but it is money from your own sweat that is supposed to be used for old age, but the government allows this money to be used now as there are among you who need it.

"InsyaAllah, if the money is used wisely there would be blessings for you,” said the prime minister.

The i-Lestari withdrawal initiative is one of four initiatives decided by the government at today’s Economic Action Council Meeting to help ease the people’s burden through these difficult times.

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