Changes in EPF Account Distribution
This post has nothing related to travel tips or guides in Penang. It’s mainly for local Malaysian readers. I just thought of posting this as I feel that it’s post-worthy.
Anyway, starting Jan 2nd, Employees Provident Fund (EPF) contributors will only have two accounts instead of the current three. The EPF contributions will now be channelled into Account 1 (70%) and Account 2 (30%). Current EPF contributors will have their account 3 savings incorporated into Account 2.
Therefore, with the new restructuring, EPF members will have an increase in their saving for retirement (Account 1) as well as having a larger amount for housing, education and withdrawals for medical reasons (Account 2). And for those who make their withdrawal from Account 1 before the dividend for 2006 is announced would only be paid the minimum dividend of 2.5% on the withdrawal amount.