Last updated : 17 May 2019    

Offences and Penalties

Employers are legally required to make EPF contributions as spelt out in the EPF Act 1991 as well as the KWSP 1991 Rules and Regulations. Failure to comply is subject to penalties as listed below.

Section Offences Penalties/Legal Action
An employer who fails to register with EPF within 7 days from the date he employs an employee.
Imprisonment term not exceeding 3 years or to a fine not exceeding RM10,000 or both.
Failure to make contribution on or before the 15th day of the month.

59(a) Make false statement orally or in writing.
48(3) Deducts the employee's share of contributions from the wages and fails to pay to EPF.
Imprisonment term not exceeding 6 years or a fine not exceeding RM20,000 or both.
47(1) & 47(2) Deducts from the wages of any employee as part of the employer's share of contribution.
41(3) Fails to notify the EPF within 30 days from the date he ceased to have any employee.
Imprisonment term not exceeding 6 months or a fine not exceeding RM2,000 or both.
42(1) Fails to furnish the statement of wages to his employee.
46(1) Failure of the Company's Director, Partner of the Firm or an Association of Persons to pay the outstanding EPF contribution.
Claims may be filed in court and actions that can be taken against you:
  • Bankruptcy action
  • Seizure & sale of assets
  • Retention of passport
    Section 39 - The EPF Board may apply to the Immigration Department to prevent any company directors/partnership of firms/business owners from leaving the country if the company/firm fails to pay the contribution asset.