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|Legal Subjects > Employment Law > Employees Provident Fund|
WHEN SHOULD EMPLOYER PAY CONTRIBUTION TO EPF ?
An employer shall before the end of the first week in the first month in which he is paying required to pay contribution to the Employees Provident Fund.
An employer shall prepare and furnish a statement of wages to each employee.
An employer who fails to make contributions to EPF shall be guilty of an offense and shall be liable on conviction to imprisonment for a term not exceeding 3 years or to a fine not exceeding RM10,000 or to both.
WHAT HAPPENS TO THE EPF MONIES IF A MEMBER DIES ?
Under the Death Withdrawal Scheme, the beneficiary which has been registered by the deceased as his or her heir or where the deceased has not named a beneficiary, certain person deemed acceptable by EPF has the right to apply for the deceased savings.
The next-of-kin or beneficiary is allowed to withdraw the entire savings.
If a member dies before reaching 60 years of age, the member's dependants will be paid Death Benefits.
Nominees of the member are entitled to monies upon the member's death irrespective of whether there is a Will or not.
However, nominations made before marriage, are automatically canceled and fresh nominations must be made.
Where a member dies without named beneficiary, the following persons will have the right to withdraw the savings :
Where the deceased has not named a beneficiary, there are 3 kinds of payments made by EPF.
Where the deceased total savings is not more than RM20,000 and a Probation Letter or Administrative Letter or Distributing Command is not submitted within 2 months from the date of the death, EPF has the right to
Where the total savings of the deceased is between RM20,000 and RM30,000, EPF cannot pay more than 50% of the total savings to the above persons.
Where the total savings of the deceased is more than RM30,000, EPF can pay up to 25% of the total savings or RM30,000 whichever is lower, to the above persons.
Where the member is a Muslim with named beneficiary, the beneficiary will only acts as an executor or "wasi" who will upon the member's death be responsible for the distribution of the deceased savings in accordance with Faraid (inheritance) laws to the legal heirs.
The nominees can make the claim from the Employee Provident Fund by completing the KWSP 9(KM) Form.
Named beneficiary who has not reach 18 years of age will have to complete additional KWSP 22 Form and for applicants who is legal heir to the named beneficiary that passed away after the deceased member will have to submit KWSP 10A Form in addition to KWSP 9(KM) Form.
Members are always encouraged to name their beneficiary to avoid any inconvenience for the beloved ones or next-of-kin in the event of death.