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| Employees Provident Fund (EPF) |
To ease employers’ burden, EPF launches 2 new initiatives
BERNAMA
13/9/2021
KUALA LUMPUR – The Employees Provident Fund (EPF) has launched two new initiatives to ease employers’ cash flow management during the pandemic and simultaneously allow them to undertake their statutory obligation.
The initiatives are an exemption on late payment charges and Employer Pay for Reduction (e-PaR), the national retirement fund said in a statement today.
Under the first initiative, employers are given flexibility on the payment period for their current mandatory contribution, while e-PaR offers a reduction on the employers’ outstanding late payment charges.
The fund said the exemption on late payment charges initiative refers to charges imposed on employers who fail to remit their EPF mandatory contributions by the 15th of every month.
“While the mandatory contribution date of the 15th of every month remains in effect, employers can now remit their contribution payments until the end of every month without incurring any late payment charges,” it said.
The initiative will go into effect automatically, without any need to apply for it, starting with contributions for this month until December 2021.
Meanwhile, the e-PaR initiative, which is open for applications from today until December 31, this year, offers employers up to 70% reduction on outstanding late payment charges imposed for any period prior to August.
“To be eligible for the reduction, employers must ensure that any outstanding contribution payments and dividends for their employees for the periods before August 2021 have been paid in full before December 31, 2021,” the EPF said.
It added that the reduction in late payment charges is aimed at assisting employers in managing their cash flows and at giving them the opportunity to settle any outstanding contribution payments.
