Do you understand what the Pay for Reduction (e-PaR) initiative is?
What is e-PAR initiative?
- Reduce Late Payment Charges by up to 70% offered to employers who have settled their outstanding contributions and dividends
- To ease financial burden of employers to sustain, remain operational and pay EPF contributions during the pandemic
How much is the reduction of Late Payment Charges offered?
- 70% from the total outstanding of Late Payment Charges for July 2021 contribution and prior to that
- offered to employers with cancelled status is 60% from the total outstanding of Late Payment Charges for July 2021 contribution and prior to that
Who is eligible to apply for e-PaR?
- Private sector employers
- Related to Late Payment Charges for the month of July 2021 Contributions (June 2021 wages) and prior
- Ensure all outstanding matters are resolved
- Payment of monthly contributions up to contribution month July 2021 (June 2021 wages) are in order.
- Payment of dividend up to July are in order (if any).
- Late Payment Charges instalment plan are in order (if any).
- No legal action taken by EPF
When can an e-PaR application be made?
- Starting 13 September 2021 to 31 December 2021
When will the Late Payment Charges reduction be updated on i-Akaun (Majikan)?
- From October 2021 onwards, upon full settlement of the Amount To Be Paid (Subject to bank’s clearance procedures)
When does the Amount To Be Paid need to settle?
- Within 30 days from Approval Date
- Offer is void if the Amount To Be Paid is not fully settled and Late Payment Charges amount will be returned to the original amount
What are benefits of e-PaR to employers?
- Assisting employers to manage cash flow more effectively
- Maintaining business continuity and retaining employees
- Encouraging employers compliance to the EPF Act
For inquiries, please refer to or contact:
- EPF official website: www.kwsp.gov.my
- Contact Relationship Centre: 03-89226000
Source from:
https://www.kwsp.gov.my/documents/20126/131466/e-PaR+FAQ.pdf/43e23875-bb57-2bd3-cf1f-88a28549ac73?t=1631500952792