635 Company Directors Blacklisted: Consequences of Failing to Pay EPF Contributions

Source: WOB

On August 28, the Employees Provident Fund (EPF) submitted the names of 635 company directors to the Immigration Department for the period between January and June 2024. These directors are now barred from leaving the country due to unpaid EPF contributions, in accordance with Section 39 of the EPF Act 1991.

“Failure to Pay Could Result in Serious Offenses”

EPF Chief Operating Officer Sazaliza Zainuddin reminded employers of their critical responsibility to make timely contributions to their employees’ EPF accounts. She emphasized that failure to do so could lead to severe consequences, with the EPF ready to pursue both civil and criminal legal actions to protect employees’ rights.

“As of June 2024, approximately 13,820 employers, or 2.02% of the 685,399 employers registered with EPF, have not paid their employees’ contributions. During the same period, 12,787 company directors have been prevented from leaving the country due to unpaid contributions.”

EPF Will Continue to Monitor Until Payments Are Settled

Sazaliza also pointed out that regular contributions are a key indicator of an employer’s commitment to their employees’ welfare and compliance with legal obligations. The EPF will continue to closely monitor compliance to ensure that all overdue amounts are settled.

Between January and June this year, there were 1,932 civil suits filed against company directors and 2,200 criminal cases against employers who failed to make their employees’ monthly EPF contributions.

EPF advises members to regularly check their accounts using the KWSP i-Akaun app to ensure their employers are making contributions on time and correctly.

What are your thoughts on this? Let us know in the comments!

ATTENTION: Nasi Lemak Daily would like to remind readers to think carefully before leaving any comments. We are not responsible for the comments posted, and all comments are the sole responsibility of their authors.