Akta KWSP 1991

1. This Act may be cited as the Employees Provident Fund Act 1991.
2. This Act shall come into force on such date as the Minister may, by notification in the Gazette, appoint.

Interpretation

In this Act, unless the context otherwise requires -
"additional amount" means the amount which may be paid under section 58;

[Am. Act A1300/2007]

"amount of wages for the month" means -

1. in respect of an employee paid monthly or at intervals of longer than a month, the amount of wages due to him in respect of the month; or
2. in respect of any other employee, the aggregate amount of wages due to him on such pay days as fall within the month:

Provided that where arrears of wages are paid to an employee upon any wage revision, such arrears of wages shall for the purposes of this Act be deemed to be part of the amount of wages for the month in which the arrears of wages are paid in addition to the amount of wages due to him in respect of the month referred to in paragraph (a) or (b);
"appointed day" means the day appointed by the Minister under subsection 1(2);
"approved company" means a company -

 

1. incorporated in Malaysia and having a place of business in Malaysia;
2. 1. having as its sole or primary object the promotion of home ownership by advancing for the purchase of lands and buildings sums of money, repayable by instalments of principal and interest over a fixed period of years, not exceeding at any time the valuation of such lands and buildings made by a licensed land surveyor or a licensed appraiser; or
   2. in which the Government of Malaysia has participation and having as its sole or primary object the financing of industries; and
3. approved by the Minister by notification in the Gazette for the purpose of receiving loans from the Board in accordance with section 26A;

[Am. Act A914/1995]

 

"approved fund" means-

1. a provident fund or other scheme for the benefit of employees established by an employer or by a group of employers and declared by the Board under section 52 to be an approved fund, and includes-
   1. any scheme in respect of persons who are in the employment of the Government of Malaysia, any State Government or any statutory or local authority and are emplaced on the pensionable establishment;
   2. any arrangement in respect of persons in the employment of any organization where the appointment to such organization is made by or with the approval of the Government of Malaysia of a person who prior to such appointment was in the employment of the Government of Malaysia, any State Government or any statutory or local authority and where the period of service with such organization is reckonable for the purposes of the grant of any pension, gratuity or other benefit by the Government of Malaysia under any written law relating to pensions, and if any doubt arises as to whether any person is in such employment or not, the decision of the Minister shall be final; or
2. any scheme expressly established by any written law immediately before 6 August 1970, for the benefit of the employees in any trade, business, industry or occupation:
   
   Provided that such scheme shall cease to be an approved fund upon the Minister declaring that it shall cease to be so;

"Board" means the Employees Provident Fund Board established under section 3;

"Chairman" in relation to the Board includes the Deputy Chairman;

"loan" includes financing in accordance with Shariah;

[Ins. Act A1504/ 2016]

"chief executive officer" means any person appointed to be a chief executive officer under section 30 of the Act;

[Ins. Act A958/ 1996]

"credit" means the contributions standing to the account of a member of the Fund together with any dividend thereon;

"employee" means any person, not being a person of the descriptions specified in the First Schedule, who is employed under a contract of service or apprenticeship, whether written or oral and whether expressed or implied, to work for an employer;

[Am. Act A914/1995; A1123/2001]

"employer" means the person with whom an employee has entered into a contract of service or apprenticeship and includes-

1. a manager, agent or person responsible for the payment of salary or wages to an "employee"
2. any body of persons whether or not statutory or incorporated; and
3. any Government, department of Government, statutory bodies, local authorities or other bodies specified in the Second Schedule and, where an employee is employed with any such Government, department, authority or body or with any officer on behalf of any such Government, department, authority or body, the officer under whom such employee is working shall be deemed to be an employer:

   Provided that no such officer shall be personally liable under this Act for anything done or omitted to be done in good faith by him as an officer of such employer;

"Fund" means the fund set up under section 24;

"gratuity" means any payment paid by an employer to an employee upon completion of service or voluntary resignation as a recognition of such employee's service;

[Ins. Act A914/1995]

"house" means any dwelling house built or being built and includes a flat, condominium or shophouse built or being built for the purpose of dwelling or partly for dwelling and partly for carrying on a business, trade or profession therein;

"Inspector" means an Inspector appointed under section 34;

[Am. Act A914/ 1995]

"member of the Fund" means a person who has an account and credit with the Fund;

[Am. Act A1300/ 2007]

"Minister" means the Minister charged with responsibility for matters relating to the Employees Provident Fund Board;

[Am. Act A914/ 1995]

"month" means a calendar month or a part thereof;

"new scheme" means the revised salaries and terms and conditions of service of employees in the service of the Government of Malaysia or of any State or of a statutory or local authority arising from the revision of salaries and terms and conditions of service of such employees made by the Government of Malaysia or of any State;

"overtime payment" means any payment due from an employer to an employee for work carried out in excess of the normal working hours of such employee and includes any payment paid to an employee for work carried out on public holidays and rest days;

[Ins. Act A914/1995]

"pensionable employee" means an employee who has been emplaced in the appropriate pensionable establishment or is deemed to have been so emplaced under any written law affecting the emplacement of employees in the appropriate pensionable establishment by the Government of Malaysia or of any State or by any statutory or local authority;

"person" includes any agent, company, association or body of persons corporate or unincorporate;

"prescribed by the Board" means prescribed by rules made under this Act;

[Ins. Act A1300/ 2007]

"prescribed by the Minister" means prescribed by regulations made under this Act;

[Ins. Act A1300/ 2007]

"retirement benefit" means any payment paid to an employee upon retirement either compulsory or optional or on medical grounds as stated under the contract of service of the employee;

[Ins. Act A914/1995]

"self-employed person" means any person who is gainfully occupied and is not an employee;

"service charge" means any money or payment, whether in the form of a service charge, a service fee, a tip, or otherwise howsoever described, which has been paid by, charged on, collected from, or voluntarily given by, a customer or any other person (not being the employer) in relation to the employer's business and which is payable to an employee whether in whole or in part, directly or indirectly, and whether under a contract of service between the employer and the employee, or otherwise;

"special housing loan" means any loan to an approved company solely for the purpose of relending to borrowers for the purchase of low cost houses;

[Ins. Act A914/1995]

"wages" means all remuneration in money, due to an employee under his contract of service or apprenticeship whether agreed to be paid monthly, weekly, daily or otherwise and includes any bonus, commission or allowance payable by the employer to the employee whether such bonus, commission or allowance is payable under his contract of service, apprenticeship or otherwise, but does not include-

[Am. Act A1080/ 2000]

1. service charge;
2. overtime payment;
3. gratuity;
4. retirement benefit;

   [Am. Act A1080/ 2000]

5. retrenchment, lay-off or termination benefits;

   [Ins. Act A914/ 1995]

6. any travelling allowance or the value of any travelling concession; or

   [Ins. Act A914/ 1995]

7. any other remuneration or payment as may be exempted by the Minister.

[Ins. Act A914/ 1995]

Establishment of the Board

For the purposes of managing the Fund and for carrying into effect the purposes of this Act, a body corporate by the name of "Employees Provident Fund Board" is established with perpetual succession and a common seal, and which may sue and be sued in its corporate name and, subject to and for the purposes of this Act, may enter into contracts and may acquire, purchase, take, hold and enjoy movable and immovable property of every description and may convey, assign, surrender, yield up, charge, mortgage, demise, reassign, transfer or otherwise dispose of, or deal with any movable or immovable property or any interest therein vested in the Board upon such terms as it deems fit.

[Am. Act A1300/ 2007]