A 39-year-old former construction worker in Selangor recently uncovered a shocking truth—his employer never contributed a single cent to his EPF (Employees Provident Fund) account, despite monthly deductions appearing on his payslip for the past seven years.
According to The Star, the worker, who believed his RM230 deductions and the employer’s RM315 share were being properly deposited each month, found his account completely empty.
When I checked my EPF account balance, I discovered that my employer hadn’t contributed to my EPF since the very first year — there was absolutely no record at all. I nearly lost it at that moment!”
The loss? Nearly RM20,000 of his own savings, while the employer reportedly saved over RM40,000 by not fulfilling their obligations.
Nurse uncovers widespread EPF fraud among colleagues
According to Xuan, another case emerged from a private hospital where a 40-year-old nurse discovered her EPF contributions were also never received.
She only became aware of it after checking her account, despite seeing consistent deductions in her salary records.
After discussing with colleagues, they realised almost none of them had received their EPF contributions either.
This wasn’t negligence—it was an organised scam,” she said.
Though the employer was fined following a report to the Human Resources Ministry, none of the affected staff have recovered their stolen savings.
Thousands of companies and directors blacklisted over EPF evasion
EPF also noted that its non-compliance appears to be more widespread than expected.
According to their statistics, over 12,787 company directors have been blacklisted and barred from leaving the country for deliberately failing to pay EPF contributions.
During the period between January and June 2024, a total of 1,932 civil suits were filed against company directors while 2,200 criminal cases were brought against employers who defaulted on their employee’s monthly EPF contributions.
In addition, more than 13,000 companies are currently under scrutiny for ignoring their statutory responsibilities.
This illegal practice is particularly common in sectors such as construction, healthcare, food services, and hospitality.
Employees urged to actively monitor their EPF accounts
Many workers fail to realise they’ve been cheated until it’s too late—often due to blind trust in payslip entries.
EPF also urges all employees to check their EPF status via the i-Akaun platform regularly.
If discrepancies are found, members should contact their employers immediately or report the issue to the EPF through the website at www.kwsp.gov.my, or by the EPF Contact Management Centre at 03-8922 6000.
Employees are warned not to wait until they leave their jobs to review their EPF.
By then, it may be too late to recover missing contributions, especially if the employer has shut down or gone missing.
Stay alert, and secure your future—because retirement savings should never be treated as optional.
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