Management Services

The most critical challenge that companies face today is deliver sustainable value in a constantly changing environment. Helping clients succeed in this environment is to listen to their challenges, reduce costs and manage risk and regulation. Running a business involves many technicalities. Let us handle them for you :

Preparation for bank loan paper

Managing financial problem company

Registration with MOF, PKK

Manufacturing license with MIDA

What is EPF?

  • Employees Provident Fund (EPF) is a compulsory savings scheme in Malaysia. Its primary aim is to provide a measure of security for old age retirement to its members. It also provides supplementary benefits to members to utilize part of their savings for house ownership and other withdrawal schemes.
  • EPF is commonly known as KWSP or Kumpulan Wang Simpanan Pekerja.

Procedure to Register
An Employee With The EPF

  • Employers must register their employees with the EPF within 7 days of employment under law.
  • An employer shall register the company or firm with the EPF by submitting the KWSP 1 Form. This can be obtained from the nearest EPF branch office.
  • Thereafter, for each employee, the employee and the employer is required to complete the KWSP 3 (AHL) Form. Generally, an employee will also be required to submit the Nomination Form KWSP 4 (AHL) which is attached together with the KWSP 3 (AHL) Form.
  • Once the application is approved, the employee will be sent a Membership Card.
  • The EPF contribution by employer and employee shall commence on the first month of salary payment pursuant to section 45(2) of the EPF Act 1991.
  • An employee only need to be registered as an EPF member once, if there is a change of employer, employee should inform their new employer their existing EPF number.

Contribute Towards the Fund

  • All employees in Malaysia must be registered as a member of the Employees Provident Fund.
  • An employer will contribute for employees below 55 years of age
    • 13% for employee earning below RM5000
    • 12% for employee earning above RM5000

    of the employee’s wages and the employee contributes 11% of the monthly wages towards the employee’s account.

  • Employers and employees are, however, allowed to elect to contribute at higher rate.

When Should Employer Pay Contribution to EPF

  • An employer shall before every 15th day of the following month fulfil their obligation by contributing to EPF for its worker and to remit the contribution to EPF. Late penalty will be charged by EPF if an employer failed to submit the contribution within the stipulated period
  • EPF monthly contribution form: KWSP 6 Borang A
  • An employer shall prepare and furnish a statement of wages to each employee.

EPF contribution by sole proprietor and partnership

  • Some owners/partners under the sole-proprietorship and partnership may draw salaries and allowances for themselves as well as make contributions to Employees Provident Fund (EPF) for their own accounts. They are considered as self-employed and is not an employee, hence it is not mandatory for them to make EPF contributions. However, they are encouraged to make EPF contributions voluntarily

What is SOCSO?

  • SOCSO is an organization set up to administer and implement the Employees’ Social Security Act, 1969 and the Employees’ Social Security (General) Regulations 1971
  • SOCSO provides social security protection by social insurance including medical and cash benefits, provision of artificial aids and rehabilitation to employees to reduce the sufferings and to provide financial guarantees and protection to the family
  • SOCSO is the abbreviation for Social Security Organization and is known as PERKESO or Pertubuhan Keselamatan Sosial

Registration of Employers and Employees

  • Employers with at least one or more employees are required to register and pay a monthly contribution to SOCSO according to the Social Security Act, 1969 even if the employees have other private insurance coverage
  • Employers must register PERKESO within 30 days from the date of operation
  • Employer is required to fill:
    • Form 1 (Employer Registration Form) and must be accompanied by 2 copies of the following documents:
      • Sdn Bhd Company – Form 9 and Form 49
      • Sole-proprietors or Partnership – Form D and Form A
    • Form 2 (Employees Registration Form)
      • Employee’s name and the identity card number must be written exactly as stated in the identity card. Submit Form 1 and Form 2 to the nearest SOCSO office and SOCSO office will issue an Employer’s Code Number to the employer as proof of registration.
      • For new employees, employer to fill up new employee information into a Monthly Contribution Schedule (Form 8A).

Compulsory Contribute To SOCSO?

  • Under the Act, an employee is defined as a person who has been employed by an employer under a contract of service or apprenticeship.
  • Employees who receive a monthly salary of RM3, 000 or less are required to contribute to SOCSO. SOCSO’s coverage is only for employees who are Malaysian citizens and who are permanent residents.
  • Employees Monthly Earning More Than RM3000 who never registered or contibuted to SOCSO are given an option to be covered under the Act.
  • Employees who have been previously registered with SOCSO and now earn more than RM3000 must continue to contribute under the First Schedule of the Act. Once an employee is eligible under the Act, he will always be eligible for coverage irrespective of his next monthly wage.

Employee NOT covered under SOCSO:

  • Government employees
  • Domestic servants
  • Self-employed persons
  • Foreign workers
  • Business owner and spouses of Sole-Proprietors or Partnership

Wages subject to SOCSO contribution:

  • Salary / Wages (full/part time, monthly/hourly)
  • Overtime payments
  • Commission
  • Paid leave (annual, sick and maternity leave, rest day, public holidays)
  • Allowances
  • Service Charge

Wages NOT subject to SOCSO contribution:

  • Payments by employer to any pension or provident fund for employees
  • Mileage claims
  • Gratuity payment(s) for dismissal or retrenchments
  • Annual bonus

When & How To Pay SOCSO (Perkeso)?

An employer shall before every last day of the following month remit its SOCSO contribution payment to SOCSO offices. Late interest will be charged by SOCSO if an employer failed to pay their monthly contributions within the prescribed period. For example, contribution for the month of April 2013 must be paid not later than 31th May 2013.An employer can pay its SOCSO contributions via the following 3 methods:

Payment through banks:

Employers who submit payments through the following banks must use the preprinted Monthly Contribution Schedule (Form 8A):

Maybank Berhad

CIMB Bank Berhad

RHB Bank Berhad

Public Bank Berhad

Bank Muamalat

Pejabat Pos Malaysia (for Sabah & Sarawak only)

Payment through Internet Banking

Employer must be registered and has an account at any of the following banks:

Malayan Banking Berhad

CIMB Bank Berhad

RHB Bank Berhad

Public Bank Berhad

Payment at SOCSO's office

SOCSO office only accepts payment by cheque or postal money order. For employers who submit contribution records through computer diskette/tape, payment must be made at the SOCSO office where they are registered.

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