Article 5: EPF Travel Ban: Are You on the List?
635 Company Directors Barred from Leaving the Country Due to Unpaid EPF Contributions
As of 28th August 2024, the Employees Provident Fund (EPF) in Malaysia has taken stringent measures to recover unpaid contributions from employers. Among these steps, 635 company directors have been barred from leaving Malaysia due to non-compliance with EPF regulations. This is part of EPF’s broader efforts to ensure employees receive their due contributions. Employers who fail to comply may face additional consequences, including lawsuits.
For more information on how outsourcing payroll can benefit your business, please contact Alena Consultancy & Services +6018-375 5170 / email: hello@alena.com.my
News Source: https://www.kwsp.gov.my/en/w/company-director-barred-unpaid-employers-contribution
As of 28th August 2024, the Employees Provident Fund (EPF) in Malaysia has taken stringent measures to recover unpaid contributions from employers. Among these steps, 635 company directors have been barred from leaving Malaysia due to non-compliance with EPF regulations. This is part of EPF’s broader efforts to ensure employees receive their due contributions. Employers who fail to comply may face additional consequences, including lawsuits.
Consequences of Non-Compliance with EPF Regulations
- Travel Bans: Company directors may be prohibited from leaving the country.
- Lawsuits: Legal action can be initiated by the EPF against non-compliant employers.
- Financial Penalties: Businesses could incur fines for failing to remit EPF contributions.
How to Ensure Compliance with EPF
To avoid these penalties, businesses should take the following steps:- Make timely EPF payments: Ensure that all employee contributions are paid in full and on time.
- Maintain accurate contribution records: Keep clear documentation of all EPF payments.
- Seek professional advice on EPF: If you are uncertain about EPF regulations, consult with an expert.
- Outsource payroll services: Consider outsourcing your payroll management to ensure EPF compliance.
Benefits of Outsourcing Payroll Services
Outsourcing payroll can provide a range of advantages for businesses, including:- Expertise: Payroll providers have in-depth knowledge of EPF contribution processes and can ensure regulatory compliance.
- Compliance: Outsourcing helps you adhere to Malaysian labor laws, reducing the risk of fines or legal action.
- Efficiency: Outsourcing streamlines payroll management, saving you time and effort.
- Cost-effectiveness: For many businesses, particularly SMEs, outsourcing payroll is more affordable than managing it in-house.
- Scalability: Payroll service providers can adjust to changes in your business size or structure.
Why Choose Alena Consultancy & Services?
At Alena Consultancy & Services, we specialize in payroll outsourcing, helping businesses navigate the complexities of EPF regulations and ensuring full compliance. With our expertise in HR outsourcing, we help businesses avoid penalties and stay focused on growth.For more information on how outsourcing payroll can benefit your business, please contact Alena Consultancy & Services +6018-375 5170 / email: hello@alena.com.my
News Source: https://www.kwsp.gov.my/en/w/company-director-barred-unpaid-employers-contribution
Sep 26,2024