NEW Employee Provident Fund (EPF) contributions for those who have withdrawn money during the Covid-19 pandemic will be credited into their Account 1, Deputy Finance Minister Mohd Shahar Abdullah said in Parliament today.

“The contribution will be credited into their Account 1 until the funds withdrawn are replaced.

“After that, contributions will revert to being split between Account 1 and 2,” he said in response to a question from Che Abdullah Mat Nawi (Tumpat-PN) about replenishing EPF after RM101 billion was withdrawn to fund various stimulus packages.

Last week, the Ministry of Finance told Parliament that EPF contributors who withdrew from their accounts during the Covid-19 pandemic will have to work an additional four to six years to make up the deficit to their retirement funds.

“EPF withdrawals during the epidemic have reduced the percentage of those who have achieved minimum retirement savings (estimated at RM240,000) from 36% in 2020 to 27% this year,” the ministry said in a written reply to Parliament.

The ministry said that the i-Lestari, i-Sinar and i-Citra withdrawal schemes had reduced retirement funds significantly, even if they had given some relief to depositors.

“As an example, 73% of the depositors are now in a serious situation where their funds are not enough for them to retire above the poverty line,” it said.

According to the ministry, Bumiputera are the most affected because 78% of them had applied to withdraw from their EPF fund. – November 24, 2021.