Wilson Nyabong claimed some employers have not settled their workers EPF or Socso contribution. – Bernama file photo
KUCHING (May 6): Pelagus assemblyman Wilson Nyabong has warned employers at the Baleh hydroelectric dam construction site in Kapit to pay up their workers’ Employees Provident Fund (EPF) and Social Security Organisation (Socso) contribution.
He said it has been brought to his attention that some employees at the dam construction site have not had their EPF and Socso deducted from their salaries, while in some instances the employer made deductions but had not remitted into their EPF accounts.
“With the availability of the internet and online banking nowadays, employers should face no problem to ensure that EPF and Socso contributions are deducted and remitted into employees’ EPF accounts and Socso accounts respectively on a monthly basis without any delays,” Nyabong said in a statement yesterday.
He said employers are obliged to pay EPF contributions for their employees under a Contract of Service or Apprenticeship.
“Employers must ensure that deductions are accurately made from the employees’ salary and remitted to EPF and at the same time make the stipulated percentage payment for employers’ contribution,” said Nyabong.
He said for employees who receive wages of less than RM5,000, the employer’s contribution is 13 per cent, while those who earn more than RM5,000, the employers contribute 12 per cent, and for both categories the employees’ contribution is nine per cent.
He said Section 48(3) of the EPF Act 1991 states that any employer who deducted the contributions from an employee’s wage but failed to pay the deducted sum or any part of it to EPF will face imprisonment of not more than six years or a fine of not more that RM20,000, or both.
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On another note, Nyabong said under the Employment Insurance System Act 2007 introduced and enforced in 2018, all employers in the private sector are required to pay monthly contributions on behalf of each employee who are employed for wages under a Contract of Service or Contract of Apprenticeship with an employer.
“All employees between the ages of 18 and 60 are required to contribute except for those aged 57 and above who have no prior contributions before the age of 57.
“The contribution rates are capped at an assumed monthly salary of RM4,000,” he said.
Nyabong said Socso contribution is important for the protection of workers and even those employed as temporary or part-time workers need to be registered with Socso.
“Employers who fail to register their workers or to make contributions may be prosecuted and face imprisonment for a term which may extend to two years or a find not exceeding RM10,000 or both,” he said.
Nyabong reminded all employers to ensure that they carry out their responsibilities in making the necessary contributions on their part as well as deductions from their employees according to the stipulated schedule.
“Do not wait until these employees lodge formal complaints to EPF or Socso,” he advised.