EPF Act amended to enhance provisions to prevent defaulter from leaving Malaysia and allow a husband to transfer part of his contribution to his wife
22 September 2020
- by replacing subsection (1) with a provision that enables the chief executive officer (“CEO”) of the Employees Provident Fund Board (“Board”) to request the Director General of Immigration to prevent a person whom the CEO has reason to believe is about or is likely to leave Malaysia without paying any outstanding and due contributions under the Principal Act by issuing a certificate containing the particulars of that person and the outstanding and due contributions unless the person concerned pays the outstanding and due contributions, or furnishes security to the satisfaction of the CEO for its payment;
Subsection (1) of section 39 had previously required the CEO to obtain a court order in respect of the moneys payable to the Employees Provident Fund (“Fund”) by the person who is to be prevented from leaving Malaysia; and
- by making it an offence under a new subsection (3) for a person, who knows that a certificate has been issued against him under subsection (1) of section 39, to leave Malaysia without paying all outstanding and due contributions stipulated in the certificate or furnishing security to the satisfaction of the CEO for its payment; the offence is punishable with imprisonment for a term not exceeding six months or with a fine not exceeding RM2,000 or with both.
Sections 8 and 11
Sections 8 and 11 of the Amendment Act introduce a new Part VB and a new Eighth Schedule respectively to the Principal Act which allow a member of the Fund (“transferor”) to transfer 2%/11% of his monthly contributions to the Fund to the account of another member of the Fund (“transferee”) who is or are his lawful wife or wives if the following conditions are satisfied:
- the marriage between the transferor and the transferee must be registered in Malaysia;
- the transferor receives employer’s contributions on a monthly basis; and
- the transferee must be a Malaysian citizen.
The new Part VB read with the new Eighth Schedule also allow the contributing member to apply to the Board to cease further transfers in the event of a dissolution of the marriage between the transferor and the transferee or the death of the transferee.
1 The remaining provisions of the Amendment Act came into operation on 15 March 2020 pursuant to Gazette Notification P.U.(B) 158/2020.