Treat your people well! Pay their EPF contributions on time or else…

Treat your people well! Pay their EPF contributions on time or else…

If you have friends who owns a company and are like this, forward them this article

I could not understand why people like to owe money which is due to their employees. They work hard to help the company earn more money. Once upon a time, a friend (who’s definitely no longer a friend) also did the same to his employees. Sigh. I hope that friend has changed his ways and be good to his employees. They work for you, they help you earn more money, they give their time, effort and brain power to you.

Recently, a close friend shared with me that our common friend told the staffs that she could not pay higher salary because her running costs are high. Erm… running costs are not the responsibility of the employees yeah. Pay them right and do not try to only pay them higher when they have handed in their resignation letter. No one will accept and even if they accept, is there still trust?

What about bosses who refuse to pay and still want to travel overseas?

Somehow, the boss has no money to pay. However, the boss needs to relax and the boss still have enough money to travel overseas? Whether for business or for holidays, you have the money to fly overseas? Well, EPF will NOT allow you to travel overseas yeah. 635 company directors have been barred just within this year alone, between January and June 2024.

Article in thestar.com.my. EPF Chief Operating Officer Sazaliza Zainuddin said the contributions remind all employers of their obligation to remit their employees’ contributions promptly, as stipulated in Section 43(1) of the EPF Act.

“Failure to make timely EPF contributions is considered a serious offence, and the EPF will not hesitate to pursue legal remedies, including civil and criminal actions, to protect employees’ rights,” he said in a statement issued by EPF on Wednesday (Aug 28).

“As of June 2024, a total of 13,820 employers, or 2.02% of 685,399 employers registered with the EPF, have failed to pay their employee’s contributions.

“For the same period, 12,787 company directors have been barred from leaving the country due to unpaid contributions, as stipulated under Section 39 of the EPF Act 1991,” it said. Read here for the full article: Article in thestar.com.my.

It’s okay to be financially stressed, people will understand

EPF is for retirement. If someone worked for 10 years and he / she did not receive a single sen from his / her employer for EPF contribution, this person have lost many thousands of ringgit easily. Someone with RM3,000 salary already have a contribution of RM390 per month or RM4,680 per year and 10 years later, it’s RM46,800 and if we assume there are salary increments and the amount inside the EPF has doubled due to the dividends, then this person has lost RM90,000 or more!

Please do the right thing yeah. If we employ anyone, be good to them and pay them what’s due. If they are not a good employee, then please find someone else but not paying the EPF contribution is really unforgivable.

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