THE Employees Provident Fund (EPF) has taken action against 635 company directors, submitting their names to the Immigration Department between January and June 2024, requesting that they be barred from leaving Malaysia due to unpaid EPF contributions.
In an official statement, EPF CEO Sazaliza Zainuddin pointed out the seriousness of failing to make timely EPF contributions, calling it a significant offence under Malaysian law.
“The EPF will not hesitate to pursue legal remedies, including civil and criminal actions, to protect employees’ rights,” he said.
Sazaliza also reminded employers of their legal obligation under Section 43(1) of the EPF Act to promptly remit contributions. He underscored that timely monthly contributions are a reflection of an employer’s commitment to the wellbeing and legal rights of their employees.
To ensure compliance, EPF will continue its enforcement efforts to recover outstanding contributions.
As of June 2024, 13,820 employers—representing 2.02% of the 685,399 employers registered with the EPF—had failed to meet their obligations. In response, 12,787 company directors have been barred from leaving the country due to unpaid contributions.
In the first half of 2024 alone, the EPF filed 1,932 civil suits against company directors and initiated 2,200 criminal cases against employers who defaulted on their employees’ monthly EPF contributions.
Furthermore, EPF advised its members to regularly check their EPF accounts through the KWSP i-Akaun app to ensure that their employers are making accurate and timely contributions. If any discrepancies are found, members are urged to contact their employers immediately or report the issue to the EPF.
The EPF also encouraged employers to use the KWSP i-Akaun platform which offers a secure way to check the list of employees whose contributions have been paid, along with the payment history, ensuring transparency and compliance. – Aug 28, 2024
Main photo credit: Reuters
