All EPF contributions to be credited into Account 1 to boost savings after pandemic withdrawals

All new Employees Provident Fund (EPF) contributions of members who have made withdrawals will be credited into Account 1 until the total amount withdrawn has been replenished, Deputy Finance Minister Mohd Shahar Abdullah said today.

Only after that will 70% of the contributions be credited to Account 1 and 30% to Account 2, he said.

“This is the government’s effort to increase the savings of members who had made withdrawals through the i-Sinar and i-Citra schemes to ease their burdens following the impact of the Covid-19 pandemic,” he said during the question-and-answer session at the Dewan Rakyat today.

He said that based on current statistics and taking into consideration the withdrawals made under the i-Sinar and i-Citra schemes, only 27% of active members aged between 18 and 55 are expected to have savings in Account 1 that exceed the basic savings quantum stipulated according to age.

He was answering a supplementary question by Che Abdullah Mat Nawi (PAS-Tumpat) on the government’s efforts to ensure that EPF savings in Account 1 are sufficient to tide contributors over after retirement.

Earlier, Shahar told the Dewan Rakyat that the government would also continue to study other methods to ensure that the people’s retirement social safety net could return to the proper level.