The Employees Provident Fund (EPF) has taken a stern approach towards employers who fail to remit their employee's contributions, with the names of 635 company directors being submitted to the Immigration Department between January and June 2024. These directors are now barred from leaving the country due to unpaid EPF contributions, as stipulated under Section 39 of the EPF Act 1991.

According to Bernama, EPF Chief Operating Officer Sazaliza Zainuddin emphasized the seriousness of timely contributions, reminding all employers of their legal obligation to promptly remit their employees' EPF contributions as outlined in Section 43(1) of the EPF Act.

Failure to make timely EPF contributions is considered a serious offense, and the EPF will not hesitate to pursue legal remedies, including civil and criminal actions, to protect employee's rights, Sazaliza stated in a press release issued on Wednesday, August 28.

The statement highlighted that monthly contributions are not just a legal requirement but also a reflection of an employer's commitment to their employees' welfare. The EPF remains committed to enforcing compliance, ensuring that all outstanding amounts are paid in full.

As of June 2024, a total of 13,820 employers, representing 2.02% of the 685,399 employers registered with the EPF, have failed to pay their employee's contributions. Furthermore, in the same period, 12,787 company directors have been barred from leaving the country due to unpaid contributions under Section 39 of the EPF Act 1991.

Between January and June this year, the EPF filed 1,932 civil suits against company directors and initiated 2,200 criminal cases against employers who defaulted on their employee's monthly EPF contributions.

The EPF advises its members to regularly check their accounts via the KWSP i-Akaun app to ensure that their employer's contributions are accurate and up to date. Members who notice any discrepancies are encouraged to contact their employers immediately or report the issue to the EPF through their website at www.kwsp.gov.my or by calling the EPF Contact Management Centre at 03-8922 6000.

Employers are also encouraged to utilize the KWSP i-Akaun platform, which allows them to securely check the list of their employees whose contributions have been paid, along with their payment history.

The EPF's ongoing efforts to enforce compliance underscore the importance of protecting employees' rights and ensuring that their retirement savings are secured.

Source: Bernama