EPF LAUNCHES INITIATIVES TO EASE EMPLOYERS’ FINANCIAL CONSTRAINTS
KUALA LUMPUR, 13 September 2021: The Employees Provident Fund (EPF) launches two new initiatives targeting employers, to ease the management of their cash flow during the pandemic and simultaneously allowing them to undertake their statutory obligation. Via the first initiative which is an exemption on late payment charges, employers are given flexibility on the payment period for their current mandatory contribution, while for the second initiative, the Employer Pay for Reduction initiative (e-PaR), employers are offered a reduction on their outstanding late payment charges.
The exemption on late payment charges initiative refers to the charges imposed on employers who fail to remit their EPF mandatory contributions by the 15th of every month. While the mandatory contribution date of the 15th of every month remains in effect, employers can now remit their contribution payments until the end of every month without incurring any late payment charges. This initiative allows the flexibility for employers to manage their cash flow effectively during this challenging time. Employers do not need to apply for this initiative as it will go into effect automatically, starting with contributions for September 2021 until December 2021.
The e-PaR initiative meanwhile, offers employers up to 70% reduction on outstanding late payment charges imposed for any period prior to August 2021. To be eligible for this reduction, employers must ensure that any outstanding contribution payments and dividends for their employees for the periods before August 2021 have been paid in full before 31 December 2021.
The significant reduction in late payment charges is aimed at assisting employers in managing their cash flows and to provide them the opportunity to settle any outstanding contribution payments. Applications for e-PaR will open from 13 September 2021 until 31 December 2021.
The EPF is cognisant of the financial challenges that local businesses are facing during the imposed movement restrictions period. The two initiatives are expected to help mitigate impacts of the pandemic on business operations as well as ensure employers continue to contribute towards their workers’ retirement savings.
Issued by the EPF Media Desk Corporate Affairs Department 13 September 2021
About the Employees Provident Fund (EPF)
The Employees Provident Fund (“EPF”) is one of the oldest retirement funds in the world. Established in 1951, the EPF is a social-security organisation focused on safeguarding member savings and delivering excellent services. In recent years, in line with its vision of helping members achieve a better future, the EPF has expanded its role to encompass the creation of a comprehensive social well-being ecosystem. Today, the EPF remains steadfast in its commitment to members through consistent efforts to update and improve itself, in order to build the foundation for sustainable, holistic and equitable well-being for all Malaysians