EPF Launches Two Initiatives to Help Employers Manage Cash Flow

The Employees Provident Fund (EPF) recently launched two initiatives for employers to help them manage their cash flow during the pandemic while still allowing them to undertake their statutory obligation. 

Exemption on late payment charges

This first initiative provides employers with the flexibility on the payment period for their current mandatory contribution. 

The exemption on late payment charges refers to the charges imposed on employers who did not remit their EPF contributions by the 15th of each month. 

Though the mandatory contribution date is still in effect, employers can now remit their contribution payments until the end of each month without getting any late payment charges. 

Employers do not need to apply for this initiative. It will go into effect automatically, beginning with contributions for September until December 2021.

Employer Pay for Reduction initiative (e-PaR)

The e-Par initiative offers employers up to 70% discount on outstanding late payment charges imposed for any period before August 2021. 

To qualify for this reduction, employers must ensure that any outstanding contribution payments and dividends for the periods before August 2021 have been fully paid before 31 December 2021. 

EPF is accepting applications for e-PaR from 13 September 2021 until 31 December 2021. 

e-PaR Late Payment Charges Reduction

The Late Payment Charges reduction for active employers is 70% from the total outstanding of Late Payment Charges for July 2021 contribution and before that. 

Meanwhile, the reduction for employers with cancelled status is 60% from the total outstanding of Late Payment Charges for July 2021 contribution and before that. 

The Employer Pay for Reduction initiative by EPF.

e-PaR Eligibility Requirements

• All private-sector employers are eligible to apply. 

• Related to Late Payment Charges for July 2021 Contributions (June 2021 wages) and prior. 

• Ensure all pending matters are resolved: 

  • Payment of monthly contributions up to contribution month July 2021 (June 2021 wages) is in order. 

  • Payment of dividend until July is in order (if any). 

  • Late Payment Charges instalment plan is in order (if any). 

  • No legal action taken by EPF

How to apply for e-PaR

Employers can apply for e-PaR online via the i-Akaun (Majikan) portal.

Employers can make payment for e-PaR via:

Internet banking: Maybank, RHB Bank, Public Bank, Bank Muamalat, Alliance Bank, Hong Leong Bank, Bank Islam, AmBank and UOB. Appointed bank agent: RHB Bank, Maybank, Bank Simpanan Nasional and Public Bank. 

EPF payment counters: Kangar, Alor Star, Seberang Jaya, Ipoh, Kuala Lumpur, Shah Alam, Seremban, Bandar Melaka, Kuantan, Kuala Terengganu, Kota Bharu, Muar, Johor Bahru, Kuching and Kota Kinabalu

When will EPF update the Late Payment Charges reduction on i-Akaun (Majikan)?

The reduction of Late Payment Charges will start from October 2021 and onwards, after the full settlement of the Amount To Be Paid (subject to the bank's clearance procedures).

Amount To Be Paid

Employers must settle the Amount To Be Paid within 30 days from the Approval Date. The offer will be void if the Amount To Be Paid is not completely settled, and EPF will return the Late Payment Charges amount to the original amount. 

Example scenario of E-PaR

Syarikat X Sdn Bhd has outstanding contributions for June 2021 and July 2021, with dividends and late payment charges for May 2021 contribution. 

Is the employer eligible to apply for e-PaR? 

Answer: This employer is only eligible to apply for e-PaR after settling: 

• Outstanding contributions of 06/2021 and 07/2021,

• Outstanding dividends for contributions 05/2021, 06/2021 and 07/2021.

Questions?

If you have any questions, please get in touch with EPF via these communication channels:

• EPF official website: www.kwsp.gov.my 

• Ask ELYA on EPF official website 

• EPF official social media platforms: 

  • Facebook: Kumpulan Wang Simpanan Pekerja 

  • Twitter: @KWSPMalaysia

• Contact Relationship Centre: 03-89226000

You can also refer to E-PaR FAQ here.

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