ID :
200268
Wed, 08/10/2011 - 07:15
Auther :
Shortlink :
https://oananews.org//node/200268
The shortlink copeid
EMPLOYEE'S AWARENESS CALLED PERTINENT ON EPF RIGHTS
KUALA LUMPUR, Aug 10 (Bernama) -- Thirty-one year old Ranimah Mohd Ramli did
all she could for almost four years to get back her Employee Provident Fund
(EPF) contribution that her employer had failed to remit.
She also represented about 80 of her colleagues who were in the same boat.
They were all employees of an IT company that had branches overseas and was
listed on the second board of Bursa KL.
This major company, with headquarters in Selangor, defaulted on its
employees’ retirement fund contribution without any justification, she said.
This is something that Ranimah and her fellow employees could not accept.
Therefore, they fought to claim what was rightfully theirs.
The Employees Provident Fund (Abbreviation: EPF) is a Malaysian government
agency under the Ministry of Finance. It manages the compulsory savings plan and
retirement planning for legally employed workers in Malaysia.
Membership of the EPF is mandatory for working Malaysian citizens, or
non-Malaysian citizens who are either permanent residents or have been EPF
members before 1 August 1998.
ERRANT EMPLOYER
Ranimah started work with the company in 2004. Yet when she checked her
savings in EPF in the middle of 2007, she was shocked to find that her employer
had stopped contributing to EPF since December of 2006.
"I reported this to my colleagues and when they checked their accounts with
EPF it was soon clear we were all in the same predicament." said Ranimah, who
left the company at the end of 2007.
Even though she had left, she continued her claim for her EPF contribution
by filing complaints with EPF and calling for a meeting with the company's
management.
"Throughout, we never gave up and kept in touch with EPF to learn of the
latest developments. After filing the complaint, we followed up with EPF on the
progress," she said.
Finally, after almost four years, when Ranimah checked the status of her
account in December 2010, she saw that her former employer had remitted her
share of the contribution.
"This is a big success for us, though only the employee portion was paid. We
will continue to fight until we get the employer's portion as well," she said.
It is mandatory for employers to contribute both the employer and employee
portion of retirement savings to EPF. Employees contribute 11 percent of their
salary, while employers contributes 12 percent. Nonetheless, either of the
parties can choose to contribute more.
NOT A WIDESPREAD PROBLEM
Ranimah's woes were not isolated, as EPF receives an average of 425
complaints from employees annually relating to errant employers.
According to EPF's Public Relations General Manager Nik Affendi Jaafar, most
of the complaints involved employers in the services and construction sector,
both large and small.
However, the number of complaints is considered small when compared with
EPF's membership of 12.72 million, as of June 2011, and the number of employers
registered with EPF at 498,107, as of June 2011.
"About one percent or 5,003 registered employers have failed to remit the
contributions, with legal actions already underway for 4,002 of them, while
another 1,001 are under investigation," he said.
Based on the EPF's contribution records, about 98.5 percent of the employers
registered with EPF have kept up with their obligation.
NO WAY OUT FOR ERRANT EMPLOYERS
Based upon statistics from 2009 to April 2011, 20,529 employers had faced
legal action and been fined RM67 million by the courts. Furthermore, 4,179 civil
cases were filed against companies and their directors.
Nik Affendi noted that employers who fail to remit EPF contributions could
be prosecuted under Section 43 (2) EPF Act 1991, which brings a jail term of not
more than three years or a fine of not more than RM10,000, or both.
Also, partners or company directors who fail to remit EPF contributions can
be declared bankrupt and have their passports confiscated.
EPF has also established strategic links with government agencies to revoke
business licenses of employers who fail to remit EPF contributions or withhold
the renewal of business licenses until the outstanding contribution has been
settled.
"We hope that stern action like this would compel employers to fulfill their
obligation to their employees. Employees should also keep checking their
statement of accounts through the services offered by EPF, including Smart Kiosk
and member's online personal account, i-Akaun, to ensure their EPF contributions
are up to date." he said.
all she could for almost four years to get back her Employee Provident Fund
(EPF) contribution that her employer had failed to remit.
She also represented about 80 of her colleagues who were in the same boat.
They were all employees of an IT company that had branches overseas and was
listed on the second board of Bursa KL.
This major company, with headquarters in Selangor, defaulted on its
employees’ retirement fund contribution without any justification, she said.
This is something that Ranimah and her fellow employees could not accept.
Therefore, they fought to claim what was rightfully theirs.
The Employees Provident Fund (Abbreviation: EPF) is a Malaysian government
agency under the Ministry of Finance. It manages the compulsory savings plan and
retirement planning for legally employed workers in Malaysia.
Membership of the EPF is mandatory for working Malaysian citizens, or
non-Malaysian citizens who are either permanent residents or have been EPF
members before 1 August 1998.
ERRANT EMPLOYER
Ranimah started work with the company in 2004. Yet when she checked her
savings in EPF in the middle of 2007, she was shocked to find that her employer
had stopped contributing to EPF since December of 2006.
"I reported this to my colleagues and when they checked their accounts with
EPF it was soon clear we were all in the same predicament." said Ranimah, who
left the company at the end of 2007.
Even though she had left, she continued her claim for her EPF contribution
by filing complaints with EPF and calling for a meeting with the company's
management.
"Throughout, we never gave up and kept in touch with EPF to learn of the
latest developments. After filing the complaint, we followed up with EPF on the
progress," she said.
Finally, after almost four years, when Ranimah checked the status of her
account in December 2010, she saw that her former employer had remitted her
share of the contribution.
"This is a big success for us, though only the employee portion was paid. We
will continue to fight until we get the employer's portion as well," she said.
It is mandatory for employers to contribute both the employer and employee
portion of retirement savings to EPF. Employees contribute 11 percent of their
salary, while employers contributes 12 percent. Nonetheless, either of the
parties can choose to contribute more.
NOT A WIDESPREAD PROBLEM
Ranimah's woes were not isolated, as EPF receives an average of 425
complaints from employees annually relating to errant employers.
According to EPF's Public Relations General Manager Nik Affendi Jaafar, most
of the complaints involved employers in the services and construction sector,
both large and small.
However, the number of complaints is considered small when compared with
EPF's membership of 12.72 million, as of June 2011, and the number of employers
registered with EPF at 498,107, as of June 2011.
"About one percent or 5,003 registered employers have failed to remit the
contributions, with legal actions already underway for 4,002 of them, while
another 1,001 are under investigation," he said.
Based on the EPF's contribution records, about 98.5 percent of the employers
registered with EPF have kept up with their obligation.
NO WAY OUT FOR ERRANT EMPLOYERS
Based upon statistics from 2009 to April 2011, 20,529 employers had faced
legal action and been fined RM67 million by the courts. Furthermore, 4,179 civil
cases were filed against companies and their directors.
Nik Affendi noted that employers who fail to remit EPF contributions could
be prosecuted under Section 43 (2) EPF Act 1991, which brings a jail term of not
more than three years or a fine of not more than RM10,000, or both.
Also, partners or company directors who fail to remit EPF contributions can
be declared bankrupt and have their passports confiscated.
EPF has also established strategic links with government agencies to revoke
business licenses of employers who fail to remit EPF contributions or withhold
the renewal of business licenses until the outstanding contribution has been
settled.
"We hope that stern action like this would compel employers to fulfill their
obligation to their employees. Employees should also keep checking their
statement of accounts through the services offered by EPF, including Smart Kiosk
and member's online personal account, i-Akaun, to ensure their EPF contributions
are up to date." he said.
