Court orders employer to pay 91-month outstanding Perkeso contributions

KUALA LUMPUR: The Johor Bahru Magistrate Court ordered Yinson Transport (M) Sdn Bhd to settle outstanding contributions to the Social Security Organisation (Perkeso) for 291 of its employees, spanning from Jan 2011 to July 2018, here yesterday.

In a statement released today, Perkeso announced that the prosecution had successfully proven, beyond a reasonable doubt, the employer's failure to remit Perkeso contributions totaling RM705,150.10 for the affected 291 lorry drivers.

The employer was also instructed to clear the entire arrears in six installments starting May 2024.

"Under the Employees' Social Security Act 1969 (Act 4), employers are obligated to ensure all employees contribute to the social security scheme to provide them with social protection, particularly for those in transportation sectors such as lorry drivers who are constantly exposed to occupational hazards during their duties," the statement explained.

"If employers fail to make the contributions, they can be charged under Section 6(1) and 8 of the Employees' Social Security Act 1969, as well as Regulation 32 of the Employees' Social Security (Amendment) Regulations 1971, and may face penalties under Section 94(a) of the same Act," the statement further elaborated.

--BERNAMA