EPF late payment in Malaysia happens when an employer pays the monthly EPF (KWSP) contribution after the 15th of the month. This guide is for SME owners and new employers. It explains the due date, the late payment charge, the dividend and the penalties that the Employees Provident Fund (EPF) lists on its website.
EPF is the national retirement savings fund. If you have at least one employee, you must register as an employer and pay contributions every month. Paying on time is the simplest way to avoid extra charges and enforcement action.
Key Takeaways
- Employer contributions are due on or before the 15th of the month after the wage month.
- Contributions must be paid monthly. They cannot be combined or paid every two months.
- Paying after the 15th brings a late payment charge. Paying from the 1st of the next month also brings dividend.
- The minimum late payment charge is RM10, and the charge is rounded up to the nearest ringgit.
- EPF lists criminal penalties for not contributing, and directors can face further action.
EPF Due Date and Contribution Month
EPF uses two terms. The wage month is the month the salary is earned. The contribution month is the month after that. For example, salary earned in January is paid into EPF in February, on or before 15 February.
| Item | Rule on the EPF website |
|---|---|
| Wage month | The month the salary is earned. |
| Contribution month | The month after the wage month. |
| Due date | On or before the 15th of the contribution month. |
| How often | Every month. Section 43(1) of the EPF Act 1991 does not allow bimonthly or combined payments. |
See our guide on EPF contributions, employer duties and rates if you are new to the basics.
What Happens With EPF Late Payment in Malaysia
If you pay after the 15th, EPF charges a Late Payment Charge (LPC). This is a fine under section 49(1) of the EPF Act 1991. The rate is the lower of the conventional and Shariah dividend rates for that year, plus 1 percent. The minimum LPC is RM10. EPF rounds the charge up to the nearest ringgit.
Dividend is also payable once the payment is made from the 1st of the month after the contribution month. Dividend is the return EPF would have credited to the member on that money. The rate is the lowest dividend declared between the conventional and Shariah savings for the year.
| When you pay | What you pay |
|---|---|
| On or before the 15th | The contribution only. |
| After the 15th, but before the 1st of the next month | The contribution plus LPC. |
| From the 1st of the next month | The contribution plus LPC plus dividend. |
Rounding example from the EPF page: if the LPC works out to RM13.21, you pay RM14. If the calculated charge is below RM10, the minimum of RM10 applies. Check the current rates with EPF before you pay.
Penalties Listed by EPF for Employers
EPF also lists offences under the EPF Act 1991. These are the ones most relevant to SME employers. The figures below are the maximum penalties shown on the EPF compliance page.
| Section | Offence | Penalty shown by EPF |
|---|---|---|
| 41(1) | Not registering with EPF within 7 days of employing an employee | Up to 3 years in prison, or fine up to RM10,000, or both |
| 42(1) | Not giving the employee a statement of wages | Up to 6 months in prison, or fine up to RM2,000, or both |
| 43(2) | Not paying contributions on or before the 15th | Up to 3 years in prison, or fine up to RM10,000, or both |
| 47(1) and (2) | Deducting the employer share from the employee wages | Up to 6 years in prison, or fine up to RM20,000, or both |
| 48(3) | Deducting the employee share but not paying it to EPF | Up to 6 years in prison, or fine up to RM20,000, or both |
For unpaid contributions, the EPF page also lists actions against directors and partners, such as court claims, bankruptcy action and seizure of assets. Under section 39, EPF may ask Immigration to stop directors, partners or business owners from leaving Malaysia.
Inspections and Overdue Contributions
EPF inspectors are appointed under section 34. Under section 35, they may enter premises believed to employ people, carry out inspections and ask questions. Inspectors may not accept cash from employers.
For overdue contributions, EPF may make an assessment. An EPF officer then issues Form KWSP 7 (Form E) and Form KWSP 8 (Form F), and payment is made on Form F. Other unpaid amounts can be paid with Form A (Online). Our article on KWSP and PERKESO employer accounts explains how to set up your accounts.
EPF Late Payment Checklist
- Set a calendar reminder for the 10th of every month, five days before the due date.
- Register as an EPF employer within 7 days of hiring your first employee.
- Check that employee names and ID numbers match their identity documents before you submit.
- Pay online through i-Akaun or the e-Caruman app, and keep the payment proof.
- If you missed a month, pay the contribution, the LPC and any dividend as soon as possible, and keep records.
Conclusion
The rule is simple: pay by the 15th, every month. Late payment adds charges, and unpaid contributions can lead to legal action. For more background, read our complete EPF guide for employers and the comparison of EPF, SOCSO and EIS contributions.
How Conzlab can help: Conzlab Berhad helps businesses review their statutory compliance setup, including employer registrations and monthly filing routines. Contact Conzlab if you would like to talk about your situation.
Official Sources
- EPF (KWSP): Compliance and Enforcement
- EPF (KWSP): Employer Mandatory Contribution
- EPF (KWSP): Contribution Payment Channels
Last updated: 11 November 2026. This article is general information, not tax or legal advice. Rules can change, so check with the agency before you act.
Frequently Asked Questions
On or before the 15th of the month after the wage month. For example, January salary is due by 15 February.
No. EPF says contributions must be paid monthly under section 43(1) of the EPF Act 1991.
The minimum LPC is RM10, and the charge is rounded up to the nearest ringgit.
No. EPF lists this as an offence under section 47(1) and (2) of the EPF Act 1991.
EPF Late Payment Malaysia: Charges and Employer Penalties