The EPF also known as the Employees Provident Fund is a compulsory retirement savings scheme for private sector employees in Malaysia. Both employees and employers contribute a percentage of the employee’s salary to the fund every month.
EPF members to be allowed to withdraw their monthly contribution
According to local newspaper New Straits Time, the highly anticipated Account 3 (Akaun Fleksibel) is expected to store 10% of members’ future monthly contribution that account holders can withdraw at any given moment. Looking at the breakdown, the EPF account will now be split into 3 accounts which are:
Source: FMT
- Account 1 – Users are not allowed to withdraw from this account and 75% of the monthly contribution to EPF will be stored here.
- Account 2 – Users are allowed to make partial withdrawals for reasons such as purchasing a house, financing education, medical expenses, or as investment for unit trusts or other approved schemes. 15% of the monthly contirbutions will be stored here.
- Account 3 – Also known as the flexible account, 10% of the monthly contributions by the employee will be stored here and is a new account made for withdrawals at any given moment.
The local mail also shared that the newly introduced account is created to help contributors sustain their livelihoods before they hit the retirement age. However, it is worth noting that contributors may choose to maximize capital gains and transfer the 10% in account 3 into accounts 1 and 2.
Prior to this, the account 3 initiative was introduced back in 2023 after EPF allowed members to withdraw cash from their accounts due to the Covid-19 pandemic.
Details for account 3!
EPF chief executive officer Ahmad Zulqarnain Onn mentioned that EPF members below the age of 55 will have their balances in Account 1 and 2 remained, while the Account 3 will commence on May 11, with a zero balance. Other than that, opt-in option is made available to users who’d like to transfer a portion of their savings to their Account 3 (Akaun Fleksibel) without having to wait for new contributions.
Aimed to help members to meet their short-term needs. Savings avvailable in Account 3 (Akaun Fleksibel), can be made through the EPF i-Akaun or at any EPF branch nationwide. However, it’s worth noting that a minimum withdrawal amount of RM50 is imposed.
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