Imprisonment 6 years or fines RM 20,000 or both.
Most of us take things for granted but if this really happens to you, you start shivering, no joke.
Business owners can be creative, lots of tricks to bend the rules or worst case the best they can to avoid any payments.
🚫 Do not attempt to:
🔥 Deduct the employer’s EPF share of contribution FROM the employee’s salary
If you found any employer trying to talk you out that the employer’s contribution can be deducted from your pay (meaning employee + employer’s % portion deducting from your pay) – the employer will be in big big trouble.
According to Section 47(1) of the EPF Act 1991 – any employer who makes deductions or attempts to make deductions from an employee’s wages or remuneration, either whole or in any part of the employer’s contribution, faces imprisonment for no more than six years or a fine of not more than RM20,000, or both.
When it comes to statutory payment, best not to play with 🔥
Be simple, direct and don’t complicate things.
This is a true case scenario of having one client before they came to us, they have been reported by their employee of such illegal deductions.
Before the authority says hello to you, do the things right.
Creativity doesn’t help in this case. Talk to us and let us be your pillar of compliance within your payroll matters.