EPF Launched New Initiatives To Assist Employers

The Employees Provident Fund (EPF) has launched two initiatives to ease employers’ financial constraints and to help mitigate the impacts of the pandemic on business operations.

EPF says the first initiative is an exemption from late payment charges, with employers given flexibility on the payment period for their current mandatory contribution, and the second initiative is 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 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.

While the mandatory contribution deadline of the 15th of each month remains in effect, employers can now remit their contribution payments until the end of the month without incurring late payment penalties.

“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,” it says. 

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. 

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.

“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,” it says.

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