Shame on fed gov’t for allowing withdrawal of EPF savings, laments MTUC secretary

Andrew Lo

KUCHING (Dec 4): Malaysian Trade Union Congress (MTUC) Sarawak objects to the federal government’s move to allow Employees Provident Fund (EPF) contributors withdrawing their savings to combat hardships arising from the Covid-19 pandemic.

Its secretary Andrew Lo said that EPF Account 1 savings were supposed to be their provisions during their retirement days.

“We all should be embarrassed that in 2020, the year that we are supposed to be in a fully developed nation, workers are so desperate that they have to resort to dig into their retirement savings to survive,” he told Utusan Borneo today.

“Shame on the government, MPs and policy makers who are demanding this facility,” he added.

Lo said the federal government should have forked out more fund from its coffers instead of initiating the I-Sinar Scheme simply to allow EPF contributors to deplete their savings.

“We are cutting our nose to spite our face. Don’t ever touch retirement savings but allocate more funds from the federal budget. Issue long term bonds. Charge windfall tax on companies like Top Glove that is profiting from the pandemic,” he lamented.

The I-Sinar Scheme would affect 8 million contributors particularly those who had lost their jobs or suffered monthly pay cut following the unprecedented economic downturn caused by the Covid-19 pandemic situation.

On Wednesday, EPF told Bernama that these 8 million eligible contributors are divided into two categories.

The first category encompasses contributors employed in the formal or gig economy sectors; those who are self-employed or have not contributed for a long time; housewives; as well as those who have lost their jobs or been put on unpaid leave.

Members who have not contributed for at least two consecutive months or more at the time of application, or those who are still employed but facing basic salary cuts of 30 per cent or more after March 1 this year are eligible to apply for the facility.

“Those under this category don’t have to provide supporting documents as the approval is automatic based on EPF’s internal data. They only need to apply online starting Dec 21, 2020,” it said.

Payments would be made starting from mid-January next year.

The second category comprises members who are still employed but facing a reduction of 30 per cent or more of their total earnings — which includes salaries, allowance and overtime pay — after March 1 this year, which can only be verified through supporting documents.

“To ease the verification process, EPF will require supporting documents from applicants, namely, payslip stating pre- and post-pay reduction, unpaid leave notice or termination notice/allowance cut and/or overtime claims.

“If the documents are not available, EPF will consider other relevant supporting documents like bank statements or confirmation letter from employers,” it said, adding that those who fall under this category may submit their application online starting Jan 11 next year.

The EPF said that members may check their application status within two to three weeks after their submission, and payments to successful applicants will be made before the end of the following month.

It said that members with RM100,000 or less in their Account 1 are allowed to withdraw up to RM10,000.

Payments will be made to applicants in stages for a maximum period of six months, with a first withdrawal of up to RM5,000.

Meanwhile, those with more than RM100,000 in their Account 1 are able to make a maximum withdrawal of 10 per cent of the amount in their account, or RM60,000 (whichever is lower).

Staggered payments will be made to applicants for a maximum period of six months, with a first withdrawal of up to RM10,000, it said.

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