Employer: Compliance with Acts to Contribute
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 | Penalty/ Legal Action |
|---|---|---|
| 41(1) | 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. |
| 43(2) | Failure to make contribution on or before the 15th day of the month. | Imprisonment term not exceeding 3 years or to a fine not exceeding RM10,000 or both. |
| 59(a) | Make false statement orally or in writing. | Imprisonment term not exceeding 3 years or to a fine not exceeding RM10,000 or both. |
| 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. | Imprisonment term not exceeding 6 years or a fine not exceeding RM20,000 or both. |
| 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. | Imprisonment term not exceeding 6 months or a fine not exceeding RM2,000 or both. |
| 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: a) Bankruptcy action b) Seizure & sale of assets c) 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. |
| Section | Offences | Case | Date of Judgment/ Order |
|---|---|---|---|
| 46(1) | Failure of the Company’s Director, Partner of the Firm or an Association of Persons to pay the outstanding EPF contribution. | LEMBAGA KUMPULAN WANG SIMPANAN PEKERJA V. ADORNA RMIT SDN BHD & 9 ORS [CIVIL SUIT NO: 22-632-2001] View Case |
03.11.2003 |
| 46(1) | Failure of the Company’s Director, Partner of the Firm or an Association of Persons to pay the outstanding EPF contribution. | TAM KWOR HAM & ORS V. LEMBAGA KUMPULAN WANG SIMPANAN PEKERJA [CIVIL APPEAL NO: 1-12-73-2004] View Case |
28.02.2006 |
| 46(1) | Failure of the Company’s Director, Partner of the Firm or an Association of Persons to pay the outstanding EPF contribution. | ONG KIM CHUAN & ANOR V. LEMBAGA KUMPULAN WANG SIMPANAN PEKERJA [CIVIL APPEAL NO: J-04-125-2006] View Case |
22.06.2009 |
| 46(1) | Failure of the Company’s Director, Partner of the Firm or an Association of Persons to pay the outstanding EPF contribution. | LEMBAGA KUMPULAN WANG SIMPANAN PEKERJA V. EDWIN CASSIAN NAGAPPAN [CIVIL APPEAL NO: 03-3-10-2019(W)] View Case |
19.07.2021 |
Employer's Smart Appeal
| Section | Offences | Penalties/Legal Action |
|---|---|---|
| 41(1) | 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. |
| 43(2) | Failure to make contribution on or before the 15th day of the month. | Imprisonment term not exceeding 3 years or to a fine not exceeding RM10,000 or both. |
| 59(a) | Make false statement orally or in writing. | Imprisonment term not exceeding 3 years or to a fine not exceeding RM10,000 or both. |
| 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. | Imprisonment term not exceeding 6 years or a fine not exceeding RM20,000 or both. |
| 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. | Imprisonment term not exceeding 6 months or a fine not exceeding RM2,000 or both. |
| 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. |
| Section | Offences | Case | Date of Judgment/ Order |
|---|---|---|---|
| 46(1) | Failure of the Company’s Director, Partner of the Firm or an Association of Persons to pay the outstanding EPF contribution. | LEMBAGA KUMPULAN WANG SIMPANAN PEKERJA V. ADORNA RMIT SDN BHD & 9 ORS [CIVIL SUIT NO: 22-632-2001] | 3 November 2003 |
| 46(1) | Failure of the Company’s Director, Partner of the Firm or an Association of Persons to pay the outstanding EPF contribution. | TAM KWOR HAM & ORS V. LEMBAGA KUMPULAN WANG SIMPANAN PEKERJA [CIVIL APPEAL NO: 1-12-73-2004] |
28 Februari 2006 |
Frequently Asked Questions
Frequently Asked Question
What action would be taken against employers who fail to register with the EPF within the specified period?
Employers face imprisonment not exceeding 3 years or a fine not exceeding RM10,000, or both (Section 41 (2), EPF Act 1991).
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