635 Company Directors Barred from Leaving Malaysia Due to Unpaid EPF Contributions

On August 28, the Employees Provident Fund (EPF) body submitted the names of 635 company directors to the Immigration Department for the period between January and June 2024.

Based on their statement, these directors are barred from leaving the country due to unpaid EPF contributions, in line with Section 39 of the EPF Act 1991.

“Failing to pay could result in a serious offence”

EPF Chief Operating Officer Sazaliza Zainuddin reminded employers of their crucial responsibility to make timely contributions to their employees.

He emphasised that failing to do so could lead to serious consequences, with the EPF body ready to pursue legal actions, both civil and criminal, to safeguard employees’ rights.

“As of June 2024, about 13,820 employers, which is 2.02% of the 685,399 employers registered with the EPF, haven’t paid their employees’ contributions. During the same period, 12,787 company directors have been stopped from leaving the country because of unpaid contributions.”

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The EPF body will continue to monitor until the amounts are paid off

Sazaliza also pointed out that regular contributions are a key indicator of an employer’s commitment to their employees’ welfare and adherence to legal requirements. EPF will continue to keep a close eye on compliance to make sure all overdue amounts are paid off.

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

EPF is advising members to regularly check their accounts using the KWSP i-Akaun app to make sure their employers are making contributions on time and correctly.

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