KUALA LUMPUR: The Employees Provident Fund (EPF) has launched two initiatives to ease employers’ financial constraints during the pandemic.
The pension fund said the first initiative was an exemption on late payment charges, with employers given flexibility on the payment period for their current mandatory contribution.
For the second initiative, EPF introduced the Employer Pay for Reduction initiative (e-PaR).
“The e-PaR offered employers a reduction on their outstanding late payment charges,” it said in a statement today.
The EPF said it was cognisant of the financial challenges that local businesses were facing during the imposed movement restrictions period.
“The two initiatives are expected to help mitigate impacts of the pandemic on business operations as well as ensure employers continue to contribute towards their workers’ retirement savings,” it added.
According to thecEPF, the exemption on late payment charges initiative referred to the charges imposed on employers who failed to remit their EPF mandatory contributions by the 15th of every month.
While the mandatory contribution date of the 15th of every month remains in effect, employers can now remit their contribution payments until the end of every month without incurring any late payment charges.
“This initiative allows the flexibility for employers to manage their cash flow effectively during this challenging time.
“Employers do not need to apply for this initiative as it will go into effect automatically, starting with contributions for September until December 2021,” it said.
Meanwhile, the EPF said the e-PaR initiative will offer employers up to 70 per cent reduction on outstanding late payment charges imposed for any period prior to August 2021.
To be eligible for this reduction, employers must ensure that any outstanding contribution payments and dividends for their employees for the periods before August 2021 have been paid in full before December 31, 2021.
“The significant reduction in late payment charges is aimed at assisting employers in managing their cash flows and to provide them the opportunity to settle any outstanding contribution payments.
“Applications for e-PaR will open from September 13 until December 31, 2021,” it said.
Source: New Straits Times
