635 company directors barred from leaving Malaysia over unpaid EPF contributions

KUALA LUMPUR: The Employees Provident Fund (EPF) has submitted the names of 635 company directors to the Immigration Department, barring them from leaving Malaysia due to their failure to remit employees' contributions between January and June this year.

In a statement today, the EPF said that the action was taken in accordance with Section 39 of the EPF Act 1991.

"Monthly contributions reflect employers' commitment to their employees' wellbeing and fulfilment of legal obligations, and the EPF will continue to enforce and monitor compliance to ensure that all outstanding amounts are paid in full," it said.

As of June 2024, a total of 13,820 employers, representing 2.02 per cent of the 685,399 employers registered with the EPF, have failed to pay their employees' contributions.

"Meanwhile, 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, while 2,200 criminal cases were brought against employers who defaulted on their employee's monthly EPF contributions," it said.

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

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

Meanwhile, the EPF advised members to regularly check their accounts via the KWSP i-Akaun app to ensure their employers' contributions are accurate and timely.

"If there are any discrepancies, members should contact their employers immediately or report the issue to the EPF through the website at www.kwsp.gov.my or via the EPF Contact Management Centre at 03-8922 6000," it said.

-- BERNAMA