Employer Pay for Reduction (e-PaR)

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
  
  

How can employers apply for e-PaR?

• Apply for e-PaR online via i-Akaun (Majikan) portal

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

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