EMPLOYEES PROVIDENT FUND ACT 1991

LAWS OF MALAYSIA ONLINE VERSION OF UPDATED TEXT OF REPRINT Act 452 EMPLOYEES PROVIDENT FUND ACT 1991 As at 1 July 2022 This text is ONLY AN UPDATED TEXT of the Employees Provident Fund Act 1991 by the Attorney General’s Chambers. Unless and until reprinted pursuant to the powers of the Commissioner of Law Revision under subsection 14(1) of the Revision of Laws Act 1968 [Act 1], this text is NOT AN AUTHENTIC TEXT. 2 EMPLOYEES PROVIDENT FUND ACT 1991 Date of Royal Assent … … … … 28 March 1991 Date of publication in the Gazette … … … … 11 April 1991 Latest amendment made by P.U. (A) 219/2022 which came into operation on … … … … 1 July 2022 PREVIOUS REPRINTS First Reprint ... ... ... ... 2001 Second Reprint ... ... ... ... 2006 3 LAWS OF MALAYSIA Act 452 EMPLOYEES PROVIDENT FUND ACT 1991 ARRANGEMENT OF SECTIONS PART I PRELIMINARY Section 1. Short title and commencement 2. Interpretation PART II THE BOARD AND THE INVESTMENT PANEL 3. Establishment of the Board 4. Membership of the Board 5. Alternate members 6. Tenure of office 7. Resignation and revocation 8. Vacation of office 9. Quorum of the Board 10. Chairman to have casting vote 11. Power of Minister to give directions 12. Duty to furnish the Minister with information 13. Authentication of seal 14. Powers and duties of the Board 15. General reserve and other reserve accounts 4 Laws of Malaysia ACT 452 Section 16. Board may establish any committee 17. Power to grant loans and make advances to its officers and servants 18. Establishment and membership of the Investment Panel 19. Vacation of office 20. Quorum and conduct of proceedings 21. The Chairman of the Investment Panel to have casting vote 22. Disqualification from membership of the Board and the Investment Panel 23. Disclosure of interest 23A. Established of Shariah Advisory Committee 23B. Functions of Shariah Advisory Committee 23C. Appointment of members of Shariah Advisory Committee 23D. Reference to Shariah Advisory Committee PART III THE FUND 24. Establishment of Employees Provident Fund 25. Board shall be trustee of the Fund 26. Power of the Board to invest 26A. Power of the Board to invest in an approved company 26B. Board to invest in Government Securities 26C. Power of the Board to establish a corporation or a company 27. Declaration of dividend 28. Provision for advancement from the Federal Consolidated Fund 29. Audit of the Fund’s annual accounts Employees Provident Fund 5 PART IIIA INVESTMENT BY MEMBER OF THE FUND Section 29A. Investment by member of the Fund PART IV APPOINTMENT OF OFFICERS AND SERVANTS, THEIR POWERS, FUNCTIONS AND DUTIES 30. Appointment of the chief executive officer, officers and servants of the Board 31. Establishment of the Disciplinary Committee 31A. Establishment of the Disciplinary Appeal Committee 32. Imposition of surcharge 33. Establishment of a Promotion Committee in respect of officers and servants of the Board 33A. Establishment of the Promotion Appeal Committee in respect of officers and servants of the Board 34. Appointment of Inspectors, their powers, functions and duties 35. Powers of entry, examination and search 36. Obstruction to exercise of powers by an Inspector 37. Power to examine persons 37A. Power of the Board to assess contributions based on information available 38. Powers of chief executive officer to ask for information and application for search warrant 39. Preventing person from leaving Malaysia without paying contributions PART V CONTRIBUTIONS TO THE EMPLOYEES PROVIDENT FUND 40. (Deleted) 6 Laws of Malaysia ACT 452 Section 41. Duty of employer to register with the Board 42. Duty of employer to prepare and furnish statement of wages 43. Rate of contributions 43A. Election for account of member of the Fund to be managed according to Shariah 44. Remittance of funds in connection with retirement 44A. Adding up credit into the account of a member of the Fund 45. Payment of contributions 46. Joint and several liability of directors, etc. 47. Employer’s contribution irrecoverable from employee 48. Recovery by employer of employee’s contribution 49. Late payment charges on contributions in arrears 50. Contributions to be paid into the Fund 51. Contributions and deposits not to be assigned or attached 51A. Transfer to the Registrar of Unclaimed Money 52. Approved funds 53. Winding up of approved fund PART VA TRANSFER OF CREDIT IN ACCORDANCE WITH THE DIVISION OF MATRIMONIAL ASSETS ORDER 53A. Transfer of credit of a member of the Fund in accordance with the division of matrimonial assets order 53B. Withdrawal of the transferred amount PART VB ELECTION BY MEMBER OF THE FUND TO TRANSFER HIS CONTRIBUTIONS 53C. Transfer of employee’s contributions Employees Provident Fund 7 Section 53D. Election by member of the Fund to transfer his contributions 53E. Cessation of transfer of contributions 53F. Re-transfer of contributions PART VI WITHDRAWAL OF CONTRIBUTIONS 54. Withdrawal from the Fund 54A. Payment of dividend in such manner as determined by the Board 54B. Date of withdrawal 54C. Withdrawal by pensionable employees 55. (Deleted) 55A. Withdrawal from the Fund for a member of the Fund who has attained the age of fifty-five years 55B. Contribution to and withdrawal from the Fund for a member of the Fund who has attained the age of sixty years 56. Release of employer’s contributions 57. Payment for withdrawal 57A. Limitation for a member of the Fund to dispute the accuracy of amount withdrawn or the validity of a withdrawal made 58. Payment of additional amount 58A. Amount withdrawn not to be utilized for other purpose PART VIA TAKING UP OF INSURANCE POLICY BY MEMBER OF THE FUND 58B. Taking up of insurance policy 8 Laws of Malaysia ACT 452 PART VII OFFENCES AND PROCEEDINGS Section 59. Incorrect declaration, failure to furnish return or furnishing false documents 59A. Court order 60. General penalty 61. Attempts, preparations, abetments and conspiracies punishable as offences 62. One trial for any number of offences 63. Court order 64. Certificate of authorized officer of the Board to be evidence 65. Civil proceedings to recover contributions 66. Protection of contributions in execution proceeding or sale under security 67. Conduct of civil proceedings 68. (Deleted) 69. Offences by body corporate 69A. Public Authorities Protection Act 1948 70. Members of the Board, Investment Panel and officers deemed as public servants PART VIIA MEMBER OF THE FUND WHO IS NOT A MALAYSIAN CITIZEN 70A. Application 70B. (Deleted) 70C. Withdrawal from the Fund 70D. Nomination 70E. Other provisions continue to apply 70F. Credit return Employees Provident Fund 9 PART VIII POWER TO MAKE REGULATIONS AND RULES Section 70G. Cessation of liability to contribute 70H. Cessation of dividend payments and transfer to Registrar of Unclaimed Money 71. Powers of Minister to make regulations 72. Powers of Minister to require other person to contribute and declare any payment or remuneration as wages 73. Powers of the Board to make rules 74. Powers of Minister to amend the Schedules PART IX REPEAL AND TRANSITIONAL PROVISIONS 75. Repeal of the Employees Provident Fund Act 1951 76. Continuance of laws, etc. 77. Transfer of powers, rights, liabilities and duties 78. Transfer of property 79. Existing contracts 80. Continuance of criminal and civil proceedings 81. Transfer of Fund 82. Continuance of officers and servants 83. Pending disciplinary proceedings 84. Transfer of member of the Fund 85. Transfer of registration of employers 86. Prevention of anomalies FIRST SCHEDULE SECOND SCHEDULE 10 Laws of Malaysia THIRD SCHEDULE FOURTH SCHEDULE (Deleted) FIFTH SCHEDULE SIXTH SCHEDULE SEVENTH SCHEDULE EIGHTH SCHEDULE ACT 452 11 LAWS OF MALAYSIA Act 452 EMPLOYEES PROVIDENT FUND ACT 1991 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. [1 June 1991, P.U. (B) 264/1991] BE IT ENACTED by the Seri Paduka Baginda Yang di-Pertuan Agong with the advice and consent of the Dewan Negara and Dewan Rakyat in Parliament assembled, and by authority of the same, as follows: PART I PRELIMINARY Short title and commencement 1. (1) This Act may be cited as the Employees Provident Fund Act 1991. (2) This Act shall come into force on such date as the Minister may, by notification in the Gazette, appoint. Interpretation 2. In this Act, unless the context otherwise requires— “additional amount” means the amount which may be paid under section 58; “amount of wages for the month” means— 12 Laws of Malaysia ACT 452 (a) in respect of an employee paid monthly or at intervals of longer than a month, the amount of wages due to him in respect of the month; or (b) in respect of any other employee, the aggregate amount of wages due to him on such pay days as fall within the month: Provided that where arrears of wages are paid to an employee upon any wage revision, such arrears of wages shall for the purposes of this Act be deemed to be part of the amount of wages for the month in which the arrears of wages are paid in addition to the amount of wages due to him in respect of the month referred to in paragraph (a) or (b); “appointed day” means the day appointed by the Minister under subsection 1(2); “approved company” means a company— (a) incorporated in Malaysia and having a place of business in Malaysia; (b) (i) having as its sole or primary object the promotion of home ownership by advancing for the purchase of lands and buildings sums of money, repayable by instalments of principal and interest over a fixed period of years, not exceeding at any time the valuation of such lands and buildings made by a licensed land surveyor or a licensed appraiser; or (ii) in which the Government of Malaysia has participation and having as its sole or primary object the financing of industries; and (c) approved by the Minister by notification in the Gazette for the purpose of receiving loans from the Board in accordance with section 26A; “approved fund” means— Employees Provident Fund (a) 13 a provident fund or other scheme for the benefit of employees established by an employer or by a group of employers and declared by the Board under section 52 to be an approved fund, and includes— (i) any scheme in respect of persons who are in the employment of the Government of Malaysia, any State Government or any statutory or local authority and are emplaced on the pensionable establishment; (ii) any arrangement in respect of persons in the employment of any organization where the appointment to such organization is made by or with the approval of the Government of Malaysia of a person who prior to such appointment was in the employment of the Government of Malaysia, any State Government or any statutory or local authority and where the period of service with such organization is reckonable for the purposes of the grant of any pension, gratuity or other benefit by the Government of Malaysia under any written law relating to pensions, and if any doubt arises as to whether any person is in such employment or not, the decision of the Minister shall be final; or (b) any scheme expressly established by any written law immediately before 6 August 1970, for the benefit of the employees in any trade, business, industry or occupation: Provided that such scheme shall cease to be an approved fund upon the Minister declaring that it shall cease to be so; “Board” means the Employees Provident Fund Board established under section 3; “Chairman” in relation to the Board includes the Deputy Chairman; 14 Laws of Malaysia ACT 452 “chief executive officer” means any person appoin