KUALA LUMPUR: The Employees Provident Fund (EPF) has submitted the names of 635 company directors to the Immigration Department between January and June 2024, requesting that they be barred from leaving Malaysia due to unpaid EPF contributions.

In a statement, EPF chief operating officer Sazaliza Zainuddin said that failing to make timely EPF contributions is a serious offence.

"The EPF will not hesitate to pursue legal remedies, including civil and criminal actions, to protect employees' rights," he said.

Sazaliza reminded employers of their obligation under Section 43(1) of the EPF Act to promptly remit their employees' contributions, noting that monthly contributions reflect an employer's commitment to their employees' wellbeing and legal responsibilities. 

He also noted that the EPF will continue to enforce and monitor compliance to ensure all outstanding contributions are paid in full.

As of June 2024, the EPF reported that 13,820 employers, or 2.02 per cent of the 685,399 employers registered with the EPF, had failed to pay their employees' contributions. Furthermore, 12,787 company directors have been barred from leaving the country due to unpaid contributions.

Between January and June 2024, 1,932 civil suits were filed against company directors, and 2,200 criminal cases were brought against employers who defaulted on their employees' monthly EPF contributions.

The EPF advises members to regularly check their EPF accounts via the KWSP i-Akaun app to ensure their employers' contributions are accurate and timely. If discrepancies are found, members should contact their employers immediately or report the issue to the EPF.

The EPF also encourages employers to use the KWSP i-Akaun platform, which allows them to securely check the list of employees whose contributions have been paid, along with their payment history.

https://www.nst.com.my/business/corporate/2024/08/1097709/635-company-directors-barred-leaving-malaysia-over-unpaid-epf