EPF reminds employers that failing to pay contributions 'serious offence'
More than 600 company directors in Malaysia have been banned from leaving the country for failing to pay contributions to the Employees Provident Fund (EPF).
The EPF said on Wednesday that it submitted 635 names of company directors to the Immigration Department between January and June to prevent them from leaving Malaysia.
According to the EPF, these employers have not settled their unpaid EPF contributions, as stipulated under Section 39 of the EPF Act 1992.
As of June 2024, a total of 13,280 employers have failed to pay their employees' contributions. This is 2.02% of the 685,399 employers registered with the EPF.
Among them, 12,787 have been barred from leaving the country due to unpaid contributions, according to the EPF.
"Failure to make timely EPF contributions is considered a serious offence, and the EPF will not hesitate to pursue legal remedies, including civil and criminal actions, to protect employees' rights," said Encik Sazaliza Zainuddin, EPF chief operating officer, in a statement.
Between January and June 2024, a total of 1,932 civil suits were filed against company directors, while 2,200 criminal cases were raised against employers who defaulted on their employees' monthly EPF contributions.
According to the EPF, monthly contributions reflect employers' commitment to their employees' well-being and fulfilment of legal obligations.
The agency said it will continue to enforce and monitor EPF contributions compliance, urging employees to regularly check their EPF accounts to ensure their employers' contributions are fulfilled.
