KUALA LUMPUR, May 21 (Bernama) — The Social Security Organisation’s (PERKESO) regularisation programme, which runs until June 22, offers new employers the opportunity to register and make voluntary contributions for their employees without facing legal action.
PERKESO Group chief executive officer Datuk Seri Dr Mohammed Azman Aziz Mohammed said employers who come forward during the period would not be subject to compounds, prosecution, or interest on late payment of contributions (FCLB).
He said employers should seize the opportunity during the one-month period, as PERKESO’s latest findings showed that the non-compliance rate among employers stood at about 26 per cent.
“According to statistics up to April, there were 915,616 registered and active employers, but only 74 per cent, or 677,556 employers, contributed for their employees.
“This indicates that employer non-compliance stands at around 26 per cent, or 238,060 employers,” he said in a statement here today.
Mohammed Azman further said that records from Ops Kesan Kebangsaan showed that the percentage of workers not contributing to PERKESO remained between 19 and 21 per cent each year.
He said that some employers remained stubborn and negligent in fulfilling workers’ rights, despite PERKESO contributions being statutory deductions under the Employees’ Social Security Act 1969 (Act 4).
On the protection of foreign workers, Mohammed Azman said that records from 2019 to date showed that a total of 495,380 foreign workers were registered with PERKESO, but no contributions had been made for them.
The five main localities found to have employed foreign workers without contribution records were Selangor (37 per cent), followed by Kuala Lumpur (22 per cent), Johor (10 per cent), Sarawak (6 per cent) and Penang (4 per cent).
“In terms of sectors, construction was the highest at 21.4 per cent, followed by manufacturing (20.9 per cent), other services including maintenance of household goods, vehicles, musical instruments and sports (12.6 per cent), agriculture, forestry and fisheries (9.1 per cent) and retail (5.3 per cent),” he said.
Mohammed Azman said that this year, PERKESO would also focus on enforcement in two new sectors, namely hawkers and gig workers,as they are required to make contributions in accordance with a previously gazetted government order.
“Our approach, however, remains a soft landing, taking into account the constraints of the current economic environment driven by global uncertainties,” he said.
Meanwhile, he said that 19,190 compound notices were issued, involving a total value of RM11.9 million, while 17,686 cases were prosecuted under Act 4 andthe Employment Insurance System Act 2017 (Act 800) from 2020 to 2025.
Failure to comply with the obligation to register is an offence and may result in a compound of up to RM5,000, depending on the offence committed.
FCLB at a rate of six per cent per annum may also be imposed on employers, in addition to court action, which may result in a fine of up to RM10,000 or imprisonment of up to two years, or both.
–BERNAMA