Many workers in Malaysia rely on their EPF contributions to build retirement savings. It can be alarming to find out that your employer is deducting EPF payments from your salary but not sending them to EPF. This situation can leave you and your colleagues missing months of contributions, causing stress about your financial security. Knowing your rights and understanding what steps to take is important if you ever face this problem.

Understanding the Issue

There’s a trending topic (and growing concern) in Malaysia now where some employees have caught their employers deducting EPF payments from their salaries but failing to send these contributions to EPF. In some cases, workers have missed months of EPF contributions showing up in their accounts, even though money was taken from their pay. Reports have described situations where, even after companies were fined, there were still no updates or efforts to repay the missing amounts.

This situation has raised important questions about what employees can do when their EPF contributions go unpaid, how they can protect themselves if they fear retaliation from their employer, and whether they have options if they decide to leave the company before receiving the unpaid EPF. Although such cases may start with individual reports, they highlight real concerns that many Malaysian workers could face if employers fail to meet their legal responsibilities. Understanding your rights and knowing what actions to take can help protect your financial future.

How to Check Your EPF Contributions?

The first step, as recommended by EPF, is to confirm whether your payments are missing. You can check your account by logging into the website or by visiting an EPF branch to request your statement. This statement shows whether your employer has been making regular contributions.

Keep copies of your payslips, especially those that show EPF deductions. These documents are important evidence if you need to make a complaint later. EPF advises employees to check their contributions regularly to catch issues early.

Speaking to Your Employer

If you feel safe, try speaking directly with your employer or the human resources department. A polite conversation can sometimes reveal if the delay is temporary or the result of an error they plan to correct. According to employment law best practices, discussing the issue internally first can be a practical way to resolve misunderstandings before taking formal action. However, if your employer cannot give you a clear answer or avoids the topic, it may be time to consider other steps.

Reporting the Problem

If your employer does not resolve the issue, EPF’s official guidance states you should report the situation to the EPF office. You can contact EPF through their website, by phone, or by visiting a branch. EPF staff can guide you on how to submit a formal complaint and what documents you need to include.

You can also report unpaid EPF contributions to the Department of Labour, known as Jabatan Tenaga Kerja, which has the authority to investigate and take action against companies that break employment laws. According to Malaysian labour regulations, employers who fail to remit EPF deductions are committing an offence.

Dealing with the Risk of Retaliation

Some employees worry that their employer might retaliate if they report them, such as by delaying salaries or refusing to pay. According to the Ministry of Human Resources, if this happens, you should keep detailed records of your employment contract, payslips, and any communication with your employer.

If your salary is delayed or unpaid, you have the right to file a complaint with the Department of Labour. Labour authorities can help you recover unpaid wages and take legal action against employers who mistreat workers.

Understanding EIS Eligibility When Resigning

The Employment Insurance System, or EIS, is designed to help employees who lose their jobs through no fault of their own, such as by being retrenched or if the company closes. According to PERKESO, quitting your job on your own does not usually qualify you for EIS support.

However, if your employer’s actions, like failing to pay EPF or salary, force you to resign, it may count as what is known as constructive dismissal. In these situations, speaking to the Department of Labour or a legal professional can help you understand whether you might still be eligible for EIS assistance.

It is also important to check your payslips to see if EIS deductions have been made. If your employer never registered you for EIS, PERKESO’s guidelines confirm that this is another violation you can report.

Employer Responsibilities After an Employee Resigns

If you decide to leave your company before your unpaid EPF is settled, your employer is still legally required to pay any outstanding contributions. EPF’s official information states that employers cannot refuse to pay EPF simply because an employee no longer works for them.

If your former employer ignores your requests for payment, you can still report them to EPF or the Department of Labour. These agencies have the power to investigate and require employers to pay what they owe.

What Employees Can Do While Looking for a New Job?

If you are searching for a new job while dealing with unpaid EPF, keep following up on your complaint with EPF or the Department of Labour. Continue to check your EPF account regularly for any updates or payments.

Make sure you know your rights as an employee by visiting EPF’s website, or PERKESO for details about EIS. These official sources provide reliable information on how to protect your rights and what steps you can take if your employer fails to meet their obligations.

Remember, you are not alone in this situation. By understanding your rights and taking the correct steps, you can protect yourself, recover your unpaid EPF, and plan for a more secure future.

• TAGS:
• Deductions
• Employees
• Employers
• Employment Insurance System
• EPF
• EPF Contributions
• PERKESO
• Retirement Savings