Affiliations 

  • 1 Management and Science University
Journal of Management & Science, 2019;17(1):106-111.
MyJurnal

Abstract

The Malaysian Employees Provident Fund (EPF) known as Kumpulan Simpanan Wang Pekerja (KWSP) is a social security institution for an employee in Malaysia and was created as a compulsory national saving plan in 1951. This institution is formed under the Laws of Malaysia which is the Employee Provident Fund Act 1991 (Act 452). KWSP provide retirement benefits by reliably managing their savings. The retirement age for Malaysian between 55 until 60 years old, then they will enjoy the benefit that is given by KWSP during retirement day. The problem occurs when there are certain employers did not perform their legal obligation to employees. The main objective of this paper is to analyses the general rules and laws regarding the duty of the employer to contribute to EPF, the punishment for any failure to perform such obligations. Also, the paper seeks to examine the reason behind such adherence to duty to contribute. This paper is mainly written to suggest ways to overcome problem regarding failure to contribute in EPF by the employer in Malaysia as compared to that in Japan. This research is adopted doctrinal legal analysis in which the primary source will be the Employee Provident Act 1991. On the secondary sources, the articles and journal wrote by local and international writers was referred. The authors contend that the Malaysian government has already enacted laws on the issues. However, the enforcement by the supervisory body is somehow weak based on the increase in the number of reported cases in the area.