Employer makes monthly deductions from employee’s salary but does not contribute to EPF for the employee? Employees can lodge a complaint with the Employees Provident Fund Board and the Labour Department!
Under Section 43(2) of the Employees’ Provident Fund Act 1991, all employers are required to make contributions 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 EPF but the money has not been credited to your EPF account, or if your employer has not made any EPF contributions on your behalf, you can report the matter to the EPF Board and the Labour Department. The authorities will take legal action against the employer.
In the case of an errant employer, the court will normally impose a six-month time limit on the repayment of the outstanding EPF contributions by easy instalments. To ensure that the defaulting employer pays the full amount of EPF arrears, the EPF Board will closely monitor the employer during the repayment period.
It is recommended that you check your EPF account monthly to see if your employer is paying your EPF contributions on time. You can check the status of your EPF savings directly through i-Akaun.
