635 Company Directors Barred From Leaving The Country Due To Unpaid EPF Contributions
KWASA DAMANSARA, 28 August 2024: The Employees Provident Fund (EPF) has submitted 635 names of company directors to the Immigration Department between January and June 2024 to bar them from leaving Malaysia without first settling their unpaid EPF contributions, as stipulated under Section 39 of the EPF Act 1991.
EPF Chief Operating Officer, Encik Sazaliza Zainuddin said, “The EPF reminds all employers of their obligation to remit their employees’ contributions promptly each as stipulated in Section 43(1) of the EPF Act. Failure to make timely EPF contributions is considered a serious offense, and the EPF will not hesitate to pursue legal remedies, including civil and criminal actions, to protect employees’ rights.”
Monthly contributions reflect employers’ commitment to their employees’ wellbeing and fulfilment of legal obligations. The EPF 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% of 685,399 employers1 registered with the EPF, have failed to pay their employee’s contributions. For the same period, a total of 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.
During the period between January and June 2024, a total of 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.
The EPF advises members to regularly check their EPF accounts via KWSP i-Akaun app to ensure their employers’ contributions are accurately and timely. If discrepancies are found, members should 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.
In addition, the EPF strongly encourages employers to use the 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.
1 Total employers comprise active and cancelled employers. ‘Cancelled’ employers refer to accounts where transactions are suspended with outstanding matters
Issued by
Editorial and Media Relations Unit
Corporate Affairs Department
28 August 2024
About the Employees Provident Fund® (EPF®)
Established in 1951, the Employees Provident Fund® (EPF®) is a social security organisation and one of the leading retirement funds in the world dedicated to protecting members’ savings and delivering exceptional services. Committed to its purpose of building a better retirement future for Malaysians, the EPF has expanded its functions to encompass a comprehensive social wellbeing ecosystem. The EPF remains steadfast in its efforts to continually update and improve its services, ensuring a solid foundation for sustainable, holistic, and equitable wellbeing for all Malaysians.