What will happen if a provident fund member does not transfer the deposits from the second account of the provident fund between May 12 and August 31?
According to the information map released by the Employees Provident Fund Board (KWSP), if members do not transfer the deposits in the second account of the provident fund between May 12 and August 31, 2024, the deposits in the third account (flexible account) will be transferred from Starting from RM0.
KWSP takes a worker with a monthly salary of RM3,000 as an example. The worker’s monthly provident fund payment is RM720. This working man currently has a deposit of RM70,000 in the first provident fund account (retirement account), a deposit of RM30,000 in the second account (ankang account), and a deposit of RM0 in the third account (flexible account).
The RM720 paid by this migrant worker will be deposited into the first, second and third accounts respectively in the ratio of 75% to 15% to 10%. Therefore, this migrant worker will have RM540 entering the first account, RM108 entering the second account, and RM72 entering the third account.
This also means that this migrant worker will have a deposit of RM70,540 in his first account, RM30,108 in his second account, and RM72 in his third account.
