635 company directors barred from leaving country due to unpaid contributions - EPF
“Failure to make timely EPF contributions is considered a serious offence, and EPF will not hesitate to pursue legal remedies, including civil and criminal actions, to protect employees’ rights."
SHAH ALAM - The Employees Provident Fund (EPF) has taken firm action against company directors who have neglected their responsibilities, submitting the names of 635 directors to the Immigration Department between Jan and June 2024.
Travel restrictions were placed on the directors who have failed to fulfil their obligations to remit employee contributions and they were barred from leaving Malaysia until they settle their outstanding EPF contributions, as required under Section 39 of the EPF Act 1991.
In a statement, EPF highlighted that as of June 2024, 13,820 employers comprise active and cancelled employers, representing 2.02 per cent of the 685,399 employers registered with the EPF, have not paid their employees' contributions as required by law.
Due to these unpaid contributions, 12,787 company directors have been barred from leaving Malaysia, highlighting the EPF’s commitment to protecting employees’ rights.
EPF Chief Operating Officer Sazaliza Zainuddin highlighted the importance of employers fulfilling their legal obligation to promptly remit employees’ contributions each month, as required under Section 43(1) of the EPF Act.
“Failure to make timely EPF contributions is considered a serious offence, and EPF will not hesitate to pursue legal remedies, including civil and criminal actions, to protect employees’ rights,” he said.
EPF's crackdown includes not only travel bans but also legal actions.
During the first half of 2024, EPF filed 1,932 civil suits against company directors and initiated 2,200 criminal cases against employers who defaulted on their contributions.
To safeguard their interests, the EPF advises members to regularly check their EPF accounts through the KWSP i-Akaun app so they could verify that their contributions had been accurately and timely credited.
If any discrepancies were found, members were encouraged to immediately contact their employers or report the issue to the EPF via their website or the EPF Contact Management Centre at 03-8922 6000.
