The Social Security Organisation (SOCSO) is calling on employers who have not yet registered and contributed to their companies and employees to do so immediately before enforcement action is taken from July 1.
SOCSO through a statement today informed that employers still have the opportunity to register their companies and employees without being subject to enforcement action if there is a delay following the Whitening Month for that matter which runs from May to June.
SOCSO also informed that after the end of the whitewashing period, it will launch Op Kesan to enforce the Employee Social Security Act 1969 (Act 4) and the Employment Insurance System Act 2017 (Act 800) on employers and employees starting this July.
“It is important that the acts are complied with in order to guarantee social security protection for all workers including foreign workers in Malaysia
“This 14th Impact Op aims to ensure that all employers who employ at least one employee (regardless of the amount of salary) register their companies and employees as per the provisions of Sections 4 and 5 of Act 4 as well as Sections 14 and 16 of Act 800,” according to the organisation .
SOSCO explained that employers’ failure to register companies and employees can be subject to compound action and prosecution under Act 4 and Act 800, which means the amount of compound imposed reaches up to RM5,000 depending on the type of offense committed.
“For employers who fail to pay the compound, they can be prosecuted in court and if found guilty, they can be sentenced to a fine of up to RM10,000 or imprisonment for up to two years or both,” according to the statement.
In addition, employers who register and contribute late will also be charged Late Contribution Interest (FCLB) at a rate of six percent per year for each day the contribution is late.
According to the statement, SOCSO will not compromise with employers’ non-compliance and will not consider exemptions from enforcement actions against the employers involved if they still fail to do so during the whitewashing period.
