If you noticed that your employers did not contribute you EPF then you can report it to the Labor Office. You are advised to check your EPF account regularly, which you can do that by visiting the KWSP office, EPF smart kiosk, and online through EPF i-Account. This way will be more secure than printing details of your pay slip.
Employee Provident Fund (EPF) provides the retirement fund for Malaysian employees, and can also be used for other financial purposes including down payment for buying house, education payment, medical payment and so on.
It is their responsibility to contribute for employees’ EPF savings else the following legal actions will be taken on them:
* Fine not more than RM 10,000 or Jail Sentence not more than 3 years or both.
* The company director passport will be held in order to prevent them from leaving our country.
When EPF Contributions Must Be Paid?
As an employer, they also must know when they should pay their contribution to EPF. They have to make it before the end of the 1st week in the month. They also need to prepare a statement of wages to each employee.
Besides that, the employer also must remit the contributions according to the rate set out in which the current contribution rate is 8% or 11% by the employee and 12% by the employer. So, they have no rights to do their own calculations.
Late Contributions Will Be Fine
If they make the contributions after the 15th of that month, then late payment of contributions will be charged:
Interest Charges – If the amount of interest calculated is less than RM10, then the interest payable will be RM10 for that month. If the amount of interest exceeds RM10, then the interest payable will be calculated to the next highest multiple of RM10. So, if interest charged is RM15, then the next highest multiple of RM10, final interest fees to be paid is RM20.