Malaysia Oversight

'Many employers not making mandatory Perkeso, EPF contributions'

By NST in November 5, 2025 – Reading time 2 minute
'Many employers not making mandatory Perkeso, EPF contributions'


KLANG: The Human Resources Ministry has detected a worrying number of employers still refusing to register or make mandatory contributions to the Social Security Organisation (Perkeso) and Employees Provident Fund (EPF) for their workers.

The ministry stressed that such actions violated employees’ rights and denied them basic protection.

Deputy Human Resources Minister Datuk Seri Abdul Rahman Mohamad said in Peninsular Malaysia, 501 compounds totalling RM2.87 million were issued from January to September for offences such as failure to make Perkeso and EPF contributions and non-compliance with the national minimum wage order.

“Investigations revealed that some employers continued to exploit part-time or temporary workers by claiming they were exempted from statutory contributions, despite clear provisions under existing labour laws.

“Based on statistics from the Peninsular Malaysia Labour Department (JTKSM), 490 investigation papers have been opened so far.

“Out of these, 353 cases were approved for prosecution in court, resulting in total fines amounting to RM138,000,” he said after an integrated enforcement operation, Op Kurier, at the Pulau Indah Industrial Area here yesterday.

“Proceeds from these fines are channelled back to the workers who lodged the complaints.”

On Op Kurier, Rahman said the inspection was carried out at a courier storage warehouse in Klang following complaints of labour law violations.

He said the inspection was aimed at ensuring employers complied with the relevant laws, such as on the minimum wage and workers’ housing standards.

“As of Nov 1, 488 enforcement operations have been conducted nationwide under JTKSM,” said Rahman, adding that the ministry would continue to carry out monitoring and follow-up actions.

© New Straits Times Press (M) Bhd



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