KUALA LUMPUR (Mar 13): The Employees Provident Fund (EPF) recorded a drop in the percentage of defaulting employers to 1.10% in the fourth quarter ended Dec 31, 2014 (Q42014).

In a statement today, EPF deputy CEO (Operations) Datuk Mohd Naim Daruwish said the decrease in the number of defaulting employers demonstrated the increasing awareness among employers of their employees’ retirement well-being.

“We also do not deny the role played by the employees themselves who, through constant checking of their EPF savings, had helped ensure their employers contribute on their behalf and on time,” Mohd Naim said.

He added that while employers were largely compliant and understood their responsibilities to contribute on behalf of their employees, there were still those who neglected their EPF obligations and did not remit employees’ EPF contributions within the prescribed period.

The quarter under review saw 189 employers fined a total of RM310,200 by the courts under Section 43(2) of the EPF Act, 1991.

In addition, a total of 278 civil suits and 816 criminal cases had also been filed with the courts against company directors and employers.

The EPF Act stipulates that all employers are required to remit their statutory monthly contributions on behalf of their employees on or before every 15th of the following month.

Among the defaulting employers were Sabah-based companies Pionner Block Concrete Products Sdn Bhd and Multitrade Seafood Sdn Bhd, which received the highest fines at RM9,000 and RM6,000, respectively.

Penang-based companies Wilayah Utara Sdn Bhd and Island Heritage Sdn Bhd, and Selangor-based Formal One (M) Sdn Bhd, were fined RM5,000 each. Techworks Sdn Bhd of Selangor was fined RM4,000.

The same quarter also saw the EPF submitting the names of 360 company directors to the Immigration Department to restrict them from leaving the country until they settle the arrears of contribution in full, pursuant to Section 39 of the EPF Act 1991.

“Our priority is to safeguard members’ retirement savings and we will take stern action against employers who are in default of their EPF contributions,” said Mohd Naim.

He also attributed the drop in defaulting employers in 4Q2014 to the unrelenting efforts by the EPF’s Enforcement and Legal Department in taking speedy action against errant employers.