EPF launched two new initiatives targeting employers, to ease the management of their cash flow during the pandemic and simultaneously allowing them to undertake their statutory obligation.
Objective:
- To ease the management of employers’ cash flow during the pandemic
- To allow employers to undertake their statutory obligation
- To help mitigate impacts of the pandemic on business operations
- To ensure employers continue to contribute towards their workers’ retirement savings
Exemption on late payment charges:
- Mandatory EPF contribution date by the 15th of each month is maintained
- Employers are allowed to remit the contribution payments by the end of every month starting with contributions for September 2021 until December 2021
- No late payment charges will be imposed by EPF on the employers
- Employers do not need to apply for this initiative which is effective automatically
Employer Pay for Reduction initiative (e-PaR)
- Employers are offered a reduction of up to 70% of their outstanding late payment charges imposed for any period prior to August 2021
- Employers must ensure that any outstanding contribution payments and dividends for their employees for the periods before August 2021 have been paid in full before 31st December 2021
- Applications for e-PaR will open from 13 September until 31 December 2021
Source from: https://www.kwsp.gov.my/-/epf-launches-initiatives-to-ease-employers-financial-constraints
