BUDGET 2021 | The government will allow Employee Provident Fund (EPF) contributors to make withdrawals of RM500 per month from their Account 1.
This can be done for up to 12 months or RM6,000 in total.
Ahead of the announcement, calls were made for the government to allow a lump sum withdrawal of up to RM10,000, particularly to benefit lower-income groups.
Resistance to the proposal includes a caution that a large number of contributors have less than RM10,000 savings in their Account 1.
Meanwhile, employee EPF contributions will also be reduced from 11 percent to 9 percent, effective January 2021.
In tabling Budget 2021, Finance Minister Tengku Zafrul Abdul Aziz also announced that EPF contributors can withdraw from their Account 2 to purchase insurance for life or critical care for themselves or their families.
These insurance schemes must be approved by EPF.
Meanwhile, tax relief of up to RM3,000 for private retirement schemes has also been extended to 2025. - Mkini
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