Malaysia's Employee Provident Fund (EPF) has imposed RM200,000 worth of fines on 144 employers for not remitting their employees' monthly contributions on time.
The fines were imposed under the EPF Act 1991, for the period between July and September 2014. The Act requires all employers to remit their statutory monthly contributions on behalf of their employees on or before the 15th of the following month.
Among the errant employers, EPF named Global Globe (M), Sunrise Training and Retraining Centre, Umibina (M), Syarikat Hussain Chik, Pan Bay Engineering, and SSM Associates, all fined in the range of RM4000 to RM6000.
In a statement, it clarified that upon conviction and application by the employers, the court may allow them to settle the arrears by way of installments of up to six months. The EPF will then credit all outstanding contributions into the respective members' accounts after the arrears have been remitted in full.
"It is mandatory for all employers to contribute on behalf of their employees and this matter should not be taken lightly," said EPF's CEO of operations, Dato’ Mohd Naim Daruwish.
"We reiterate that the EPF saving is for the employees' retirement well-being and employers have both the legal and moral obligations not to default in paying their EPF contributions."
In the same quarter, EPF had submitted names of 304 company directors to the Immigration Department, to prevent them from leaving the country before clearing their dues. The directors had been notified in advance, and were given 14 days to respond.
In addition, 227 civil suits and 645 criminal cases were filed against company directors and employers between July and September 2014.
"We continue to be firm and take stern action against errant employers as EPF savings is the main source of income for their employees’ retirement," he added.