PETALING JAYA: The Employees Provident Fund (EPF) has launched the Employer COVID-19 Assistance Programme (e-CAP) to support small-and-medium enterprises (SMEs) affected by the COVID-19 global pandemic.
e-CAP allows eligible SMEs flexibility to choose to apply for a deferment and restructuring of the employer’s share of EPF contributions for the months of April, May and / or June 2020.
The deferred contribution for the respective month of choice can then be settled over a maximum period of three months.
Those SMEs who are interested in having their contributions deferred and restructured for two or three months should also take note that they must ensure their application for the previous month is approved before they can submit a new application.
The e-CAP measure complements other Covid-19-related initiatives that have been announced by the EPF to support members, preserve livelihoods and assist businesses, including the reduction of the employee’s share of contributions from 11% to 7%, the i-Lestari Withdrawal facility for members to withdraw savings from Account 2 and the extension of the April 2020 employer’s contribution deadline to the end of the month.
CEO Alizakri Alias said “Hopefully, the e-CAP will assist in some way towards helping affected SMEs to flow back the cash to ensure business continuity and provide jobs for as long as possible.
“To supplement the e-CAP, we are also offering all Malaysian employers an advisory service on all things EPF via our Employer Advisory Services where dedicated officers will discuss and work out customised, needs-based plans to help them fulfill their obligations in light of the current situation,” he said in a statement.
To be eligible for e-CAP, SME employers must: have 200 employees or less on payroll, ensure that all monthly contribution payments (both employee and employer portions) up to the February 2020 contribution date are in order, and ensure that the employee’s share of the payment for the contribution months being applied for (April, May or June) has been paid
The EPF also reminds employers who choose to apply for e-CAP that dividends on late payments will still apply though the Fund will consider a waiver or reduction in late payment charges on a case-by-case basis.
