STARTING January, those who lost their jobs will be able to withdraw RM500 monthly for one year from the Employees’ Provident Fund (EPF) Account 1, said Tengku Zafrul Tengku Abdul Aziz.

The finance minister pegged the maximum withdrawal from the account to RM6,000.

Tengku Zafrul said an estimated RM4 billion will be paid out from Account 1 under this plan to help those in need of financial assistance.

“Those affected can apply to withdraw from January 1, 2021,” he said in his Budget 2021 speech.

He said the employees can also reduce their contribution to the EPF by two percent from 11 percent to nine percent from January.

He said the 12-month reduction will involve RM 9.3 billion.

Zafrul said contributors will also be allowed to withdraw from Account 2 to buy life insurance or takaful life protection products, insurance to cover critical illness and policies for the family’s protection.

He said the plans must be those approved by the EPF.

EPF contribution for workers will be reduced from 11% to 9% starting January 2021 for 12 months to increase their take-home pay. – November 6, 2020.