KUALA LUMPUR – The Employees Provident Fund (EPF) has launched two new initiatives to ease the employers’ cash flow management during the pandemic and simultaneously allow them to undertake their statutory obligation.
The initiatives are an exemption on late payment charges and Employer Pay for Reduction initiative (e-PaR), the national retirement fund said in a statement today.
Under the first initiative, employers are given flexibility on the payment period for their current mandatory contribution, while e-PaR offers a reduction on the employers’ outstanding late payment charges.
The fund said the exemption on late payment charges initiative refers to the charges imposed on employers who fail 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,” it said.
The initiative will go into effect automatically, without any need to apply for it, starting with contributions for September 2021 until December 2021.