Malaysia Oversight

RM89mil in fines for firms failing to register workers with Perkeso, EPF

By NST in November 4, 2025 – Reading time 2 minute
RM89mil in fines for firms failing to register workers with Perkeso, EPF


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 violate employees’ rights, including those of Malaysians, and deny them basic protection.

Deputy Human Resources Minister Datuk Seri Abdul Rahman Mohamad said from January to September this year alone, 501 compounds worth RM2.87 million were issued for offences including failure to contribute to Perkeso and EPF, as well as non-compliance with the minimum wage order.

Abdul Rahman said that similar action had also been taken in Sabah, where total fines imposed reached RM87 million.

“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 Department of Labour Peninsular Malaysia (JTKSM), a total of 490 investigation papers have been opened so far.

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

“I just returned from Sabah yesterday.

“One company there was fined between RM50,000 and RM100,000.

“The proceeds from these fines are channelled back to the workers who lodged the complaints,” he said.

He warned that the ministry would not hesitate to take stern action against any employer, local or foreign-owned, who denied workers their statutory rights.

“Despite the law being in place, many continue to flout it. We will keep conducting surprise inspections nationwide, and if found guilty, we will not hesitate to issue summonses and prosecute them in court.

“Our summonses are not something to take lightly, so if you think we won’t act, go ahead and try,” he said.

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

He said the integrated inspection aimed to ensure that employers comply with the Employment Act 1955, Minimum Wage Order 2024, and the Workers’ Minimum Standards of Housing and Amenities Act 1990.

“The ministry also emphasised that the operation sought to verify that workplaces were safe and conducive, and that all mandatory contributions were made to guarantee employees’ social security and retirement protection.

“As of Nov 1, 488 enforcement operations have been conducted nationwide this year under JTKSM.

“We reiterated that there will be no compromise for employers who continue to ignore labour regulations.

“Through integrated operations like Op Kurier, we aim to raise employer awareness and strengthen the culture of compliance with Malaysia’s labour laws,” Abdul Rahman said, adding that ongoing monitoring and follow-up actions would continue under the ministry’s enforcement calendar.

© New Straits Times Press (M) Bhd



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