Akta Kumpulan Wang Simpanan Pekerja 1991
Applies to: Federal Act — see s 70A (Application) · Official text ↗
- Defines who is considered an employee and an employer for the purposes of the Act (s 2).
- Requires employers to register with the Board before paying wages subject to contributions (s 41(1)).
- Mandates monthly contributions from both employees and employers based on wages (s 43(1)).
- Specifies that the employer is liable to pay both their own and the employee's contributions (s 45(1)).
- Allows for the withdrawal of funds upon death, incapacity, or leaving Malaysia (s 54(1)).
- Permits members aged fifty-five or older to withdraw all or part of their savings (s 55A(1)).
- Sets penalties for failing to pay contributions or providing false information (s 43(2), s 59(1)).
What this law is
The Employees Provident Fund Act 1991 (Akta Kumpulan Wang Simpanan Pekerja 1991) is numbered Act 452 in the Laws of Malaysia. Where it applies is set out in section 70A (Application).
Its long title, as printed in the official text: An Act to provide for the law relating to a scheme of savings for employees’ retirement and the management of the savings for the retirement purposes and for matters incidental thereto.
Read every section, the amendment history and the official copy on our law library page for this Act.
How the Act is arranged
- Part I — Preliminary (ss 1–2)
- Part II — The board and the investment panel (ss 3–23D)
- Part III — The fund (ss 24–29)
- Part IIIA — Investment by member of the fund (s 29A)
- Part IV — Appointment of officers and servants, their powers, functions and duties (ss 30–39)
- Part V — Contributions to the employees provident fund (ss 40–53)
- Part VA — Transfer of credit in accordance with the division of matrimonial assets order (ss 53A–53B)
- Part VB — Election by member of the fund to transfer his contributions (ss 53C–53F)
- Part VI — Withdrawal of contributions (ss 54–58A)
- Part VIA — Taking up of insurance policy by member of the fund (s 58B)
- Part VII — Offences and proceedings (ss 59–70)
- Part VIIA — Member of the fund who is not a malaysian citizen (ss 70A–70F)
- Part VIII — (ss 70G–74)
- Part IX — Repeal and transitional provisions (ss 75–86)
Part titles are from the official arrangement of sections.
Time limits in this Act
| What | Limit | Section |
|---|---|---|
| Register with the Board | before the end of the first week in the first month in which he is paying wages | s 41(1) |
| Dispute accuracy of amount withdrawn | within twelve months from the date of withdrawal | s 57A(1) |
| Dispute validity of withdrawal | within six years from the date the notification of such withdrawal is served | s 57A(3) |
| Return all amount withdrawn after conviction for false declaration | within six months from the conviction date | s 59(2) |
| Make further withdrawal for same purpose after returning amount | after two years from the date the amount is returned | s 59(3) |
Offences and penalties
| Offence | Penalty (as written in the Act) | Section |
|---|---|---|
| Failure to register with the Board | imprisonment for a term not exceeding three years or to a fine not exceeding ten thousand ringgit or to both | s 41(2) |
| Failure to pay contributions within prescribed period | imprisonment for a term not exceeding three years or to a fine not exceeding ten thousand ringgit or to both | s 43(2) |
| Failure to pay dividend on late contributions | imprisonment for a term not exceeding three years or to a fine not exceeding ten thousand ringgit or to both | s 45(4) |
| Making false declarations or failing to furnish documents | imprisonment for a term not exceeding three years or to a fine not exceeding ten thousand ringgit or to both | s 59(1) |
| General contravention of the Act | imprisonment for a term not exceeding six months or to a fine not exceeding two thousand ringgit or to both | s 60 |
Laws cited on this page
| Act 452 | Employees Provident Fund Act 1991 Akta Kumpulan Wang Simpanan Pekerja 1991 | PDF · PDF (BM) · Official ↗ |
Each law links to our mirror page: a copy of the official text captured on a known date, its version history, and the official source. Law library →
Key sections
| Provision | What it says, in plain words |
|---|---|
| s 1 | The Act comes into force on a date appointed by the Minister via notification in the Gazette. |
| s 2 | Defines key terms such as 'employee', 'employer', and 'Board', noting that an employee is anyone employed under a contract of service or apprenticeship, excluding those in the First Schedule. |
| s 41 | Employers must register with the Board before the end of the first week of the first month they pay wages subject to contributions; failure to do so is an offence. |
| s 43 | Every employee and employer is liable to pay monthly contributions on the month's wages at the rates in the Third Schedule (s 43(1)), and not less than contributions based on the minimum wage where a minimum wages order applies (s 43(1A)); either may elect to contribute at a higher rate (s 43(3)). |
| s 45 | The employer is primarily liable to pay both their own contributions and the employee's contributions, which are deemed to be paid by the employee. |
| s 49 | If contributions are not paid within the prescribed period, the employer must pay late payment charges in addition to any dividend due. |
| s 54 | The Board may authorize withdrawal of all funds if the member dies, is incapacitated, or is a non-citizen leaving Malaysia, and allows partial withdrawals for specific purposes like housing or medical financing. |
| s 55A | Members who have attained the age of fifty-five years may withdraw all or part of their savings, subject to Board conditions. |
| s 57A | Disputes regarding the accuracy of a withdrawal amount must be made within twelve months of the withdrawal date, while disputes regarding the validity of the withdrawal must be made within six years of notification. |
| s 59 | Making false declarations or failing to furnish required documents is an offence, and convicted persons must return withdrawn amounts within six months of conviction. |
| s 60 | Any person contravening the Act without a specific penalty provided is liable to imprisonment for up to six months or a fine not exceeding two thousand ringgit, or both. |
| s 65 | Contributions payable under the Act can be recovered by the Board summarily as a civil debt, including any dividend and late payment charges. |
Worked examples
Facts. Ahmad starts a small business in Kuala Lumpur and hires his first employee, Siti, on 1st of the month. He begins paying her wages immediately.
The law. Every employer must register with the Board before the end of the first week in the first month in which he is paying wages in respect of which he is required to pay contributions (s 41(1)).
Outcome. Ahmad must complete the registration with the Board by the end of the first week of that month to avoid committing an offence (s 41(2)).
Facts. Rahim, an employer in Penang, fails to pay the monthly contributions for his employee, Ali, within the period prescribed by the Minister.
The law. The employer is liable to pay dividend on such contributions at the rate determined by the Board (s 45(3)) and late payment charges (s 49(1)). Failure to pay is an offence (s 43(2)).
Outcome. Rahim must pay the outstanding contributions plus the calculated dividend and late payment charges, and he is liable to imprisonment or a fine if convicted (s 43(2), s 45(4)).
Facts. Siti, a Malaysian citizen aged 40, has saved enough in her EPF account. She purchases a house and takes a loan, with the house charged as security for the loan.
The law. The Board may authorize a member to withdraw part of the amount standing to their credit if they have purchased or built a house and taken a loan with the house charged as security (s 54(6)(d)).
Outcome. Siti can apply to the Board to withdraw part of her savings to help with the housing costs, subject to the Board's terms and conditions (s 54(6)).
Examples are simplified illustrations with invented names; real cases turn on their own facts.
Questions & answers
Who is an employee under this Act?
Any person, other than those described in the First Schedule, employed under a contract of service or apprenticeship, written or oral, express or implied, to work for an employer (s 2). "Employer" includes Government departments, statutory bodies and local authorities specified in the Second Schedule (s 2).
Who is responsible for paying the employee's contribution?
The employer is liable to pay both their own contributions and the contributions payable by the employee (s 45(1)). Contributions paid by the employer on behalf of the employee are deemed to be contributions by the employee (s 45(1)).
Can I withdraw my EPF savings before I am 55?
Yes, the Board may authorize a member to withdraw part of the amount standing to their credit for specific purposes such as purchasing a house, medical financing, or higher learning (s 54(6)). However, full withdrawal is generally restricted to specific circumstances like death, incapacity, or leaving Malaysia (s 54(1)).
What happens if I make a false declaration when applying for a withdrawal?
Making a false declaration is an offence, and upon conviction, you are liable to imprisonment or a fine (s 59(1)). You must also return all the amount withdrawn within six months from the conviction date (s 59(2)).
How long do I have to dispute a withdrawal amount?
Any dispute pertaining to the accuracy of the amount of withdrawal allowed by the Board must be made within twelve months from the date of withdrawal (s 57A(1)). Disputes regarding the validity of the withdrawal must be made within six years from the date the notification is served (s 57A(3)).
Can non-Malaysian citizens withdraw their EPF savings?
Yes, the Board may authorize the withdrawal of all amounts standing to the credit of a non-Malaysian citizen if they have died, are incapacitated, are about to leave Malaysia with no intention of returning, or have attained the age of fifty-five years (s 70C(1)).
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Sources
Related
Employment law: your rights at workEmployment Act 1955Employees' Social Security Act 1969