The Prime Minister announced last week that members of the Employees Provident Fund (EPF) would be allowed to withdraw up to RM500 per month from their account. This production facility, known as i-Lestari, will be available starting April 1, 2020.
The i-Lestari withdrawal aims to ease the financial burden of members to meet the basic monthly needs of the Covid-19 pandemic. Below are what people need to know about i-Lestari:
i-Lestari Withdrawal basically functions as follows:
- Withdrawals can only be made from Akaun 2.
- The number of monthly withdrawals one is entitled to be counted from the date of receipt of the approved application for withdrawal, until the end of the facility’s validity period, i.e. 31 March 2021.
- Requested withdrawals will be credited to the member’s bank account on a monthly basis (recurring for the subsequent months)
Example:
- If an application is approved in April 2020, the number of monthly withdrawals one is entitled to be the maximum amount of 12 monthly withdrawals.
- If an application is approved in September 2020, the number of monthly withdrawals one is entitled to be 7 months.
- If an application is approved in March 2021, the number of monthly withdrawals one is entitled to be 1 month.
The i-Lestari Withdrawal facility is open to:
- Malaysian citizens, permanent residents, and non-Malaysians;
- Age below 55; and
- Have savings in Akaun 2.
Duration of application for i-Lestari Withdrawal application.
- Members can submit the i-Sustainable Withdrawal application form from April 1, 2020, to March 31, 2021. (Applications must be approved by the EPF by March 31, 2021)
Amount members are allowed to withdraw under i-Lestari Withdrawal
- The permitted amount under i-Lestari Withdrawal ranges from a minimum of RM50 to a maximum of RM500 a month; subject to the amount of savings available in the member’s Akaun 2 at the time of withdrawal payment being made for the particular month.
- If the total amount of savings in Akaun 2 is lesser than the amount applied for, then the amount of withdrawal for that particular month shall be whatever the remaining amount is.
When will payment be made to EPF members?
- For withdrawal applications received in April 2020, payment will be made in May 2020.
- For withdrawal applications received after April 2020, withdrawal payment will be made from the date the withdrawal application is received by the EPF.
How to apply?
A complete application form can be submitted to the EPF beginning 1 April 2020 through the following methods:
- Online (use e-Pengeluaran via Member’s i-Akaun)
- By e-mail addressed to: [email protected]; or
- By post addressed to:
Kumpulan Wang Simpanan Pekerja, Karung Berkunci No 220, Jalan Sultan 46720, Petaling Jaya with the note (Attention to i-Lestari) written on the front of the envelope
To ensure faster approval process members are encouraged to submit their applications online via e-Pengeluaran. Manual submissions sent through methods (b) and (c) will take a longer processing time. However, withdrawal applications for non-Malaysians can be made via methods (b) and (c) only.
Why is i-Lestari Withdrawal only allowed once every month?
- The monthly withdrawal frequency is designed to supplement the monthly source of income to help members meet their monthly basic financial needs.
Why is i-Lestari Withdrawal only available for one year?
- The i-Lestari Withdrawal Facility is intended as a financial relief to assist EPF members to weather the impact of COVID-19 pandemic. The Government will continue to monitor the development of the current situation and the necessity of this facility from time to time.
Source: KWSP/EPF
