Employer deducts money from employee’s salary every month but does not contribute to the provident fund? Employees can file a complaint with the Employees Provident Fund Board and the Labour Department!
According to Section 43(2) of the Employees’ Provident Fund Act 1991, all employers are required to contribute to the Employees’ Provident Fund on or before the 15th of each month. Any employer who contravenes this regulation is liable to imprisonment for a term not exceeding 3 years, a fine not exceeding RM10,000 or both.
If your salary has been deducted from your CPF but the money has not been credited to your CPF account, or if your employer has not made any CPF contributions for you, you can report to the CPF Board and the Labour Department. The authorities will take legal action against the employer.
In the case of an erring employer, the court will generally limit the payment of the outstanding CPF contributions to 6 months in easy installments. To ensure that the defaulting employer pays the arrears in full, the CPF Board will closely monitor the employer during the repayment period.
It is advisable to check your CPF account monthly to see if your employer is paying your CPF contributions on time. You can check the status of your CPF deposits directly through i-Akaun.
The CPF Board will suspend the update of member’s contribution data in January and February every year until the latest Dividend is announced.
