The percentage of employers defaulting on Employees Provident Fund (EPF) contributions dropped from 1.75% in the third quarter to 1.6% in the fourth quarter of last year.
The decrease showed that even during the economic downturn, most employers were committed towards contributing to EPF for their staff, its public relations general manager Nik Affendi Jaafar was quoted as saying in The Star newspaper.
“This could be due to the enforcement measures taken by EPF, as well as their awareness on providing a comfortable retirement for their employees,” he said in a statement.
He said 187 employers were fined between RM1,000 and RM7,000 under Section 43(2) of the EPF Act from October to December last year for not making contributions.
During the same period, 169 civil cases and 2,313 criminal cases were filed in court against defaulting employers.
The EPF also submitted the names of 221 company directors to the Immigration Department to prevent them from leaving the country as provided for under the EPF Act.