All EPF contributions to be credited into Account 1 to replenish savings — deputy finance minister

All EPF contributions to be credited into Account 1 to replenish savings — deputy finance minister
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KUALA LUMPUR (Nov 24): All new Employees Provident Fund (EPF) contributions of members who had made withdrawals will be credited into Account 1 until the total amount withdrawn is replenished, said Deputy Finance Minister I Mohd Shahar Abdullah.

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

 "This is the government's effort to increase the savings of members who have made withdrawals through the i-Sinar and i-Citra schemes to ease their burden following the impact of the Covid-19 pandemic,” he said during the question-and-answer session in the Dewan Rakyat on Wednesday (Nov 24).

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 Datuk Che Abdullah Mat Nawi (PAS-Tumpat) on the government's efforts to ensure EPF savings in Account 1 are sufficient for contributors to tide things over after retirement.

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

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