KUALA LUMPUR: A total of 215,172 employers with outstanding Late Payment Contributions (FCLB) to the Social Security Organisation (PERKESO) are eligible for discounts of up to 50 per cent under the extended “Bulan Pemutihan” (Amnesty Month) initiative, which ends on May 31.
Human Resources Minister Steven Sim Chee Keong said the initiative, however, does not apply to employers involved in benefit claims, legal proceedings or compound notices – including cases of failure to register businesses or employees, or delays in reporting workplace accidents.
“The arrears under the Employees’ Social Security Act 1969 (Act 4) and the Employment Insurance System Act 2017 (Act 800) are estimated at RM100 million. This is an opportunity for employers to ease their financial burden,” he told a press conference today.
Sim added that 198 employers have also been identified with outstanding compound payments under both acts, amounting to RM990,000.
“My message to all employers is clear – come forward and register your workers with PERKESO. After May 31, there will be no mercy. We will go all out to take firm action against those who fail to comply,” he said.
Sim said the decision to extend the Amnesty Month initiative was due to the encouraging response, with a 40 per cent increase in new employer registrations recorded last month compared to the same period last year.
He said employers who fail to register and contribute to PERKESO can be compounded up to RM5,000 depending on the offence, charged FCLB interest at six per cent per annum (calculated daily), or face imprisonment of up to two years, a fine of RM10,000, or both, if found guilty.
So far, 913 FCLB notices involving 433 new employers, worth RM226,980, have been waived under the Amnesty Month initiative, reflecting the government’s commitment to helping employers comply with social security regulations.
Meanwhile, commenting on the newly announced cross-sector employer transfer policy, Sim said the government will issue comprehensive guidelines on the matter soon.
“For now, the focus is mainly on formal sectors,” he said.
The decision was made at the 13th Joint Committee Meeting between the Home Minister and the Human Resources Minister on the Management of Foreign Workers (Session 1/2025).
