KUALA LUMPUR (Aug 28): The Employees Provident Fund (EPF) has submitted 635 names of company directors to the Immigration Department from January to June 2024, to bar them from leaving Malaysia, according to the provident fund on Wednesday.

In a statement, the EPF said the company directors are not allowed to leave the country without first settling their unpaid EPF contributions, as stipulated under Section 39 of the EPF Act 1991.

EPF chief operating officer Sazaliza Zainuddin said: “The EPF reminds all employers of their obligation to remit their employees’ contributions promptly, as stipulated in Section 43(1) of the EPF Act”. 

“Failure to make timely EPF contributions is considered a serious offense, and the EPF will not hesitate to pursue legal remedies, including civil and criminal actions, to protect employees’ rights,” he added in the statement.

Monthly contributions reflect employers’ commitment to their employees’ wellbeing and their fulfilment of legal obligations. 

The EPF will continue to enforce and monitor compliance to ensure that all outstanding amounts are paid in full, read the statement.

As of June 2024, a total of 13,820 employers, or 2.02% of 685,399 employers registered with the EPF, have failed to pay their employees’ contributions. 

For the same period, a total of 12,787 company directors have been barred from leaving the country due to unpaid contributions, as stipulated under Section 39 of the EPF Act 1991.

During the period of January to June 2024, a total of 1,932 civil suits were filed against company directors, while 2,200 criminal cases were brought against employers who defaulted on their employees’ monthly EPF contributions.

The EPF advises members to regularly check their EPF accounts via the KWSP i-Akaun app, to ensure their employers’ contributions are made in a timely and accurate manner. If discrepancies are found, members should contact their employers immediately, or report the issue to the EPF.

In addition, the EPF strongly encourages employers to use the KWSP i-Akaun platform, which allows them to securely check the list of their employees whose contributions have been paid, along with their payment history, it added.