KUALA LUMPUR: Employers in the accommodation, food, and beverage sectors have been identified as the most reluctant to contribute to the Social Security Organisation (PERKESO), with 880 cases of compounds and prosecutions recorded since last year.
Its group chief executive officer Datuk Seri Dr Mohammed Azman Aziz Mohammed said that two other sectors with the highest non-compliance levels are other services such as vehicle maintenance premises and beauty salons (658 cases), as well as the manufacturing sector (590 cases).
He urged all employers to take advantage of the grace period from April 1 to 30 to register and contribute voluntarily to avoid legal action.
“This one-month opportunity is considered the last chance for employers to register their employees and settle outstanding contributions before PERKESO begins uncompromising nationwide enforcement,“ he told a press conference here today.
Employers who come forward voluntarily during the grace period will be exempted from compounds, prosecutions, and Interest on Late Payment Contributions (FCLB).
Mohammed Azman also said that since the implementation of Op Pekerja Asing at the end of last year, PERKESO’s coverage for foreign workers has increased by 5.5 per cent, with 120,608 new contributors as of last February.
Additionally, the manufacturing sector recorded the highest employment of foreign workers (24 per cent), followed by construction (17 per cent) and human services (11 per cent), out of a total of 527,698 registered individuals.
“Employers in these sectors are also encouraged to take advantage of the grace period to continue registering and contributing for their foreign workers to avoid any legal action. Failure to do so may result in compounds and prosecutions of up to RM5,000,“ he said.
Between 2019 and 2024, PERKESO issued 15,922 compound notices worth RM11.91 million to employers who failed to register their businesses and employees, with 13,215 prosecution cases recorded under the Employees’ Social Security Act 1969 (Act 4) and the Employment Insurance System Act 2017 (Act 800).
As of February, nearly 1.64 million employers are registered under Act 4, but only 641,631 are actively contributing, while the number of active employees is nearly 10 million.
He further said that the annual Op Kesan programme has shown a significant increase in employer and employee registrations during the grace period; however, approximately 15 to 20 per cent of employers remain unregistered with PERKESO.
“We observe that each time a grace period is provided, the number of employers and employees registering increases, sometimes up to twice as much. However, it is important for employers to always consider the welfare of employees and register without waiting for announcements or operations like this,“ he said.
Employers can also register through the ASSIST Portal, visit 54 PERKESO offices nationwide, or contact the careline at 1-300-22-8000.
