The Employees Provident Fund (EPF) has recently reported that a significant number of employers in Malaysia have fallen short in paying their employees’ contributions.
As of June 2024, 13,820 employers—about 2.02% of the 685,399 registered employers—have not met their contribution obligations. This issue affects many workers and highlights the importance of employers adhering to their legal responsibilities.
To tackle this problem, EPF has introduced stringent measures:
- Travel restrictions: A total of 12,787 company directors have been barred from leaving the country due to unpaid EPF contributions. This action is supported by Section 39 of the EPF Act 1991, reported Berita Harian.
- Legal actions: EPF has filed 1,932 civil suits and initiated 2,200 criminal cases against employers who have not paid their contributions.
- Director names submitted: 635 company directors’ names have been forwarded to the Immigration Department to enforce travel restrictions until their outstanding payments are resolved.
Sazaliza Zainuddin, EPF’s Chief Operating Officer, emphasised the severity of these violations.
“Failure to pay EPF contributions on time is a serious offense, and EPF will not hesitate to take legal action against non-compliant employers,” she said.
For employers looking to stay compliant, EPF offers the i-Akaun platform. This tool helps employers securely check and manage their contribution payments, ensuring they meet their legal obligations.
