Unpaid EPF Contributions: 635 Company Directors Barred From Leaving Malaysia

KUALA LUMPUR,  Aug 28 (Bernama) -- Employees Provident Fund (EPF) has submitted names of 635 company directors to the Immigration Department between January and June 2024 to be barred from leaving the country, due to unpaid EPF contributions as stipulated under Section 39 of the EPF Act 1991. 

EPF Chief Operating Officer Sazaliza Zainuddin said the contributions remind all employers of their obligation to remit their employees’ contributions promptly, as stipulated in Section 43(1) of the EPF Act.

“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,” he said in a statement issued by EPF today. 

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The statement noted that monthly contributions reflect employers’ commitment to their employees’ wellbeing and fulfilment of legal obligations.

EPF said it will continue to enforce and monitor compliance to ensure that all outstanding amounts are paid in full. 

“As of June 2024, a total of 13,820 employers, or 2.02 per cent of 685,399 employers registered with the EPF, have failed to pay their employee’s contributions.

“For the same period, 12,787 company directors have been barred from leaving the country due to unpaid contributions, as stipulated under Section 39 of the EPF Act 1991,” it said.

The statement also said that between January and June this year, 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.

EPF also advises members to regularly check their accounts via KWSP i-Akaun app to ensure their employers’ contributions are done accurately and timely.

EPF members can 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, if discrepancies are found.

It also encourages employers to use 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. 

-- BERNAMA