KWSP and PERKESO Video Description
What is KWSP?
The Kumpulan Wang Simpanan Pekerja (KWSP), also known as the Employees Provident Fund (EPF), is a mandatory savings scheme for employees in Malaysia. Employers are required to contribute a percentage of their employees’ monthly salary to this fund, while employees also contribute a portion of their wages. Employers typically contribute 12% to 13%, depending on the salary range, while employees contribute 11% of their earnings. These contributions are aimed at ensuring employees have sufficient savings for their retirement. Employers must submit contributions promptly each month to avoid penalties. KWSP plays a vital role in safeguarding employees' financial security in their retirement years.
What is PERKESO (SOCSO) ?
The Pertubuhan Keselamatan Sosial (PERKESO), also known as SOCSO (Social Security Organization), provides social security protection for employees in Malaysia. It covers incidents such as work-related accidents, injuries, disabilities, and death. Employers are responsible for making monthly contributions based on their employees’ salaries, under two schemes: the Employment Injury Scheme and the Invalidity Pension Scheme. PERKESO contributions are essential as they provide financial support for employees and their families in cases of emergencies. Employers must ensure timely payment of PERKESO contributions and compliance with all regulations to avoid legal consequences.
How to Register for KWSP and PERKESO ?
Employers must first register their business with KWSP and PERKESO. The required documents include company registration details (SSM certificate), a business license, and employee details. Registration can be completed online or at the respective offices. Once registered, employers can manage contributions using systems like KWSP i-Akaun for KWSP and the PERKESO ASSIST Portal for PERKESO. This makes it easier to track and submit contributions efficiently each month.
Employer Responsibilities
Employers are legally responsible for ensuring that all contributions to KWSP and PERKESO are calculated correctly and submitted on time. Late or incorrect submissions may result in fines and penalties. Employers must also keep employee details updated and provide the correct documentation when requested. Failure to comply with KWSP and PERKESO regulations not only leads to penalties but also impacts employees' social welfare and retirement security.
Conclusion
Managing KWSP and PERKESO accounts is a key responsibility for all Malaysian employers. These contributions ensure employees’ financial well-being and provide security in the event of accidents or retirement. By staying compliant with regulations, employers can build trust and create a supportive work environment for their employees, ensuring the smooth operation of their business.
KWSP & PERKESO Employer Accounts: Everything You Need to Know for Your Business