employee retention programme

What is Employee Retention Programme (ERP)?

Employee Retention Programme / Program Pengekalan Pekerjaan is an immediate financial assistance worth RM600 monthly for employees who have been instructed to take unpaid leaves due to the Covid-19 pandemic.


what is Employee Retention Programme (ERP)?

Employee Retention Programme / Program Pengekalan Pekerjaan is an immediate financial assistance worth RM600 monthly for employees who have been instructed to take unpaid leaves due to the Covid-19 pandemic.

Eligibility Requirements
  • Private sector employees (inclusive of part time workers) who are registered and contribution for Employment Insurance System (EIS) / Sistem Insurans Pekerjaan (SIP).
  • Employees with a monthly salary of RM 4000 and below.
  • Execution of Notice of Unpaid Leave with a minimum of 30 days between 1 to 6 months (unpaid leave notice must be issued starting from 1 march 2020)
Period Assistance
  • Between 1 to 6 months based on the period of the unpaid leave notice given by the employer.
How To Apply
Payment Method
  • Payment for ERP will be credited to the employees through the employer withing 7 days after receiving the payment from PERKESO

Step To Claim Wages Subsidy Program (WSP)

1 - sme software matching grant

Choose Programm Pengekalan Pekerjaan (ERP)

2 - sme software matching grant
STEP 2: Insert your SOCSONo & Email Address

Fill in SOCSO No and Email Address and click SEMAK button

After click Semak, if no record, you can see a new buttion, click on PERMOHONAN BARU
3 - sme software matching grant
STEP 3: Insert Employee Detail (Section A)

Fill in all employer detail that required*

STEP 3: Upload Supporting Document (Section B)
  • A) Notice of Unpaid Leave Letter (PDF)

Click here to download the format.

The information needs to take note:
- Propose to take unpaid leave
- Unpaid leave date period
- Employer will help to apply for an Employment retention program
- Employee Sign with IC

  • Every company has a different labor contract, please refer to your consultant for more detail of the letter.
  • Special thanks to Anc Group – Mr. Song  sample letter of remuneration package adjustment.

  • B) Attachment of Employee List

Click here to download the format & fill in manually.

Column Explanation

No Tuntutan Ke (1,2,3) 1 = 1st Time Apply, 2 = 2nd Time Apply
Name Pekerja Employee Name
No. Kad Pengenalan Identification Number (I.C No)
Jantina Gender
Pangkat Rank/ Level
Jawatan) Position
Pendidikan Education
No. Telefon Contact Number
Email Pekerja Employee email address
Gaji Semasa (RM) Current Salary (Include OT, Commission, Bonus, Gross Salary)
  • C) Bank ID/ MyCOID identification No.

Click here to download the format.

Refer description of this posting to download the sample format.
* The format need to save as PDF for upload purpose.

  • d) Bank Statement

Save as PDF format for upload purpose.

Tick all declaration & click on Hantar
Once successful, you will be received message as below

FAQ Employee Retention Programme (ERP)

  • What should I do if my company's application for WSP is approved?

Employers can claim the subsidy from SOCSO given that they have paid their employees their full salary. Employers must still contribute monthly for their employees’ SOCSO and EIS payments based in the employee’s actual salary amount

  • Can I apply for both the Employment Retention Programme (ERP) and the wage subsidy programme (WSP) at the same time?

Employers whose application for ERP has been approved can also apply for the wage subsidy programme if their companies meet the wage subsidy guidelines.

But employers cannot apply for ERP and wage subsidy for the same employee for the same month.

  • Do I still need to pay my employees their full salary if my application for WSP has been approved?

Yes, employers still need to pay their employees full salary.

  • If there was an agreement between the employees and the employer to take Unpaid Leave or to have a salary deduction in order to keep the business running, does the company still qualify for WSP?

No. This is not allowed based on the eligibility requirement given for WSP.

  • Notice Of Revocation For Voluntary Excess

A notice to cancel this option must be made in Form KWSP 18 (Maj) for the employer and Form KWSP 18A (AHL) for the employee.

The notice shall be effective from the month of contribution stated in Form KWSP 18 (Maj). The effective date for cancellation shall not be made in retrospective.

  • Explanation About Payments That are Exempted
Service Charge
  1. Any money or payment either in the form of a service charge, a service fee, a tip or other payments which has been paid by, charged on, collected from or voluntarily given by a customer or any other person (who is not the employer) with respect to the employer's business.
  2. This payment is payable to an employee either in whole or in part, directly or indirectly, and whether under a contract of service between the employer and the employee or otherwise.
 
Overtime Payment
Any payment due from an employer to an employee for work carried out in excess of the normal working hours of such employee and includes any payment paid to an employee for work carried out on public holidays and rest days.
 
Gratuity
Any payment paid by an employer to an employee upon completion of service or voluntary resignation as a recognition of such employee's service.
 
Retirement Benefit
Any payment paid to the employee for retirement whether it is mandotary or optional or for health reasons as specified under the Contract of Service.
 
Retrenchment, Lay-off or Termination Benefits
Any payment made by an employer due to the reduction or termination of employees.
 
Any Travelling Allowance or The Value of Any Travelling Concession
Any payment paid by an employer to an employee for the purpose of travelling and transportation expenses.
 
Transfer Of Retirement Benefits
  1. In addition to section 43, an employer or any other person may at any time, with the consent of the employee, remit to the Board-
    1. any funds being retirement benefits of the employee; or
    2. any funds from any other retirement scheme or plan relating to the employee, in any manner as may be prescribed by the Board.
  2. An employee or any other person may at any time remit to the Board any funds from any retirement scheme or plan relating to the employee or person in any manner as may be prescribed by the Board.
  3. Upon the Board receiving the funds as remitted under subsection (1) or (2), the Board shall cause the funds to be paid into the Fund in accordance with section 50.
Section 43(2), EPF Act 1991
 
"Retirement Benefits" means any payment paid to an employee for retirement whether compulsory or optional or for health reasons as specified under the contract of employment of the employee.
 
An employer may, with the approval of an employee, transfer to the employee's EPF account any funds being the retirement benefits of the employee or any funds from any other retirement scheme or plan relating to the employee. Such a transfer can be made through Form KWSP 16F by individual or group.
 
The general terms for remittance of Retirement Benefits to the EPF are:-
  • Employers need to obtain consent from employees in accordance with the provisions of Section 44 of the EPF Act 1991 before the transfer of Retirement Benefits.
  • If the employer fails to contract the employee and have applied for retirement benefits to be credited to employee's account at EPF, employers are required to complete and sign the Undertaking And Indemnity Letter of Transfer of Employee Retirement Benefit to EPF.
 
  • EPF Contribution Payment

The employer must pay his employee's contributions based on the rate stipulated in the Third Schedule of the EPF Act 1991.

The employer must contribute within the stipulated period, which is on or before the 15th of the month following the wage month.

The employer must initially pay to the EPF both his and the employee's shares. However, the employer may recover the employee's share of the contribution by deducting it from the employee's wage when the wage is paid to the employee.

  • Contribution Month

The contribution month is the month in which contribution is payable based on the salary of the preceding month. Contribution for any given month must be paid on or before the 15th of the month.

For example, in the case of salary for January 2009, the contribution month is February 2009, and contribution must be paid on or before 15th February. (The contribution for any given month is from the salary deduction from the previous month).

  • Contribution Schedule (Third Schedule)

The latest contribution rate for employees and employers effective January 2019 salary/wage can be referred in the Third Schedule, EPF Act 1991 (click to download). Employers are required to remit EPF contributions based on this schedule.

For late contribution payments, employers are required to remit contributions in accordance with the third schedule as attached below by referring to the applicable effective date. Please click on the hyperlinks below for employee and employer contribution rates:

a) Effective from 1 January 2019 (January 2019 salary/wage)

b) Effective from 1 January 2018 to December 2018 (January 2018 salary/wage up to December 2018)

c) Effective from 1 Mac 2016 to December 2017 (Mac 2016 salary/wage up to December 2017)

d) Effective from 1 August 2013 to February 2016 (August 2013 salary/wage up to February 2016)

e) Effective from 1 January 2012 to July 2013 (January 2012 salary/wage up to July 2013)

f) Effective prior 1 January 2012 (December 2011 salary/wage and previous month)

 Note:   The latest Adobe Acrobat Reader (at least version 8.0) is required to view, print or download the Third Schedule file.

Enquiry
Further enquiries can be directed through the following:

a. Online feedback via enquiry
b. EPF Contact Management Centre at 03 – 8922 6000
c. Any EPF Office

  • Contribution With Incomplete Information (CTML)

Contribution with Incomplete Information (CTML) refers to contributions which cannot be credited to the member's/employee's account due to incomplete employee's information furnished by the employer/member through Form KWSP 6 (Form A), Form KWSP 7 (Form E), Form KWSP 16F (Retirement Benefits Transfer) or Form 15 (Schedule of Contributions Transferred from Approved Funds), or member's information that are inconsistent with the EPF's records.

Reasons For Existence Of CTML
CTML occurs when the member's particulars provided by the employer in Form A are incorrect or incomplete as per the EPF's records. The required particulars are as follows:
 
  1. EPF membership number
  2. Identity Number (Identification card/passport and others)
  3. Name with correct spelling as per identification documents
 
How To Identify CTML
The employer can identify CTML on a member's record from:
 
  1. e-CTML at Employer i-Akaun
  2. The monthly contribution statement sent by the EPF to the employer. The asterisk (*) mark under the relevant employee's details refers to CTML.
  3. Form KWSP 1314 which is attached to the contribution statement.
 
How To Resolve CTML Issues
Employers may rectify CTML issues through the following:
 
  1. e-CTML

    Employers may resolve the CTML issue through the Employer's i-Akaun. Employers can get the correct member information by using the search facility in the i-Akaun. Employers are only required to have either 12-digit identification card number or correct employee's EPF number in order to make the search.

  2. KWSP 1314 Form

    Employers must fill in the full name, identification card number and employee's number correctly as per the employee's identification card in the column provided in Form KWSP 1314. It must be signed by the employer before it is returned to the EPF.

 
  • Contribution Payment Method By Employer

Contribution payment can be made through:
i. Online banking
   •    Financial Processing Exchange (FPX)
   •    Direct Debit Authorization (DDA)
   •    Bank Portal (M2U)
ii. Internet Banking
iii. Cheques
iv. Bankers Cheques
v. Money Order / Postal Order
vi. Cash

All payments must be made to KUMPULAN WANG SIMPANAN PEKERJA.

Employers must write down employer's reference number and contribution month on the reverse side of the money order, postal order, cheque of banker's cheque.

For payments via internet banking, employers must have an account with any banks listed in a Schedule A: List of approved banking agents for internet banking.

Where to make contribution payment?

Employers can make monthly contribution payment (Form A) and any contribution payment at any EPF branches with receipt function.  Contribution payments can also be sent by mail to EPF state branches and Muar.

Monthly contribution payments (Form A) together with late payment charges and dividends for overdue contribution payments can be made through any approved banking agents listed below.

Payments can be made through any bank branches and bring along the particular contribution form.

Schedule A: List of approved banking agents for internet banking

  1. Public Bank Bhd
  2. CIMB Bank
  3. Maybank Berhad
  4. Hong Leong Bank
  5. Citibank
  6. Alliance Bank
  7. Affin Islamic
  8. RHB Islamic
  9. UOB Bank
  10. OCBC Bank
  11. Deutsche Bank
  12. Ambank
  13. Kuwait Finance House
  14. Bank Islam Malaysia Berhad (BIMB)
  15. HSBC Bank
  16. BSN

Schedule B: List of approved banking agents for payments via bank counters

  1. Maybank Berhad
  2. Public Bank Bhd
  3. RHB Bank Berhad
  4. BSN

Note: Only monthly contribution payments (Form A), payments for Late Payment Charges, payments for self-contribution and payments for 1Malaysia Retirement Scheme (SP1M) can be made through bank counters.

Payment Channels

Payment can be made through these channels:

Payment Mode e-Caruman Internet Banking Banking agent counter Epf Counter Mail

Payment in Ringgit Malaysia

Electronic:
1.    FPX
2.    Direct Debit Autorization (DDA)
3.    Bank Portal (M2U)
Electronic Contribution Payment (through banks website)
  1. Cash
  2. Cheque
1. Cash *
2. Cheque
3. Money Order
4. Postal Order
5. Bankers Cheque
1. Cheque
2. Money Order
3. Postal Order

Payment Receipt

Official receipts can be printed via Employers i-Akaun after payment has been made online.

EPF will not produce official receipt.  Employers are advised to keep the online banking payment slip for every transaction made. Bank payment slip is accepted as official payment receipt. The KWSP 30 official receipt will be produced after the payment has been receipted by the EPF. The KWSP 30 official receipt will be mailed to employers after payment has been receipted by the EPF.
 
Note – Cash * (EPF Counter):
1.    Starting January 2018, cash payment for Monthly Contribution Payment (Form A) will cease.
2.    For other contribution payments, a maximum limit of RM500 per transaction can only be made at EPF Counter until 3pm.
3.    Starting July 2018, cheque payments and money order / postal order will NOT be accepted at EPF Counter.


Click here
for list of EPF Counter and Payment Function
 
  • Late Payment Of Contribution - Late Payment Charge/Dividend

Late contribution payment refers to the payment received by EPF for a certain contribution month after the 15th of that month. Defaulting employers regardless of whether their employees opted for Simpanan Shariah or not, will be imposed with the following:

  • Late Payment Charge
 

The lower dividend rate between Simpanan Konvensional and Simpanan Shariah for each respective year with an additional one (1) percent.

The minimum late payment charge imposed is RM10. The late payment charge will be rounded up to the nearest Ringgit denomination.

Example:
The late payment charge imposed is RM13.21 and this must be rounded up to RM14.

  • Dividend
 

The dividend rate to be paid will be based on the lower between that of Simpanan Konvensional and Simpanan Shariah. For the years prior to the introduction of Simpanan Shariah, the calculation of late payment charges and dividend will be based on the EPF dividend rate declared for the respective years.

Late payment of contribution includes:

  • Overdue contribution;
  • Under-paid contribution
  • Overdue Contributions

In the event that the employer fails to pay the contributions within the prescribed period, this contribution will be considered as an outstanding contribution. Under certain circumstances, the EPF will make an assessment of the contribution.

The EPF Officer will then submit Form KWSP 7 (Form E) and Form KWSP 8 (Form F). Payment must then be made using From KWSP 8 (Form F).

For unpaid outstanding contributions, payments can also be made using Form A (Online).

  • Employers Contribution Statement

The EPF will periodically send a contribution statement to employers. The employer must check the accuracy of information shown in the contribution statement.

If there are errors in the contribution statement, the employer must inform the EPF in writing within one month from the date of receipt of statement.

  • Retirement Benefits Transfer

The employer may, with the consent of the employee, transfer any retirement benefits to the employee's account with the EPF. The retirement benefits transfer must be made using Form KWSP 16F.

  • Update EPF on Retrenchment of Workers
  1. Stop Employing Workers Temporarily
     

    Employers who do not have employees for a given month need to inform EPF by mail/facsimile/ e-mail or other designated channels from time to time.

    The EPF may cancel employer's reference number if the employer has no liability to contribute/no employee for a period of 6 months consecutively.

  2. Do not have and no intend to employees
     

    Employers who do not have an employee and do not intend to employ an employee in the future, should notify EPF either by completing Form KWSP 6 (Form B), letters, emails or other designated channels from time to time.

    Submit to the EPF within 30 days from the resignation/termination date of last employee.

    The EPF will cancel the employer's reference number.

    Please contact the EPF should you have employed new employee.

  • Termination Of Operation

An employer who wishes to terminate the operation shall notify the EPF in writing either by completing the form EPF 6 (Form B), mail, e-mail or the other designated channels from time to time.

Submit to the EPF within 30 days from the resignation/termination date of last employee.

The EPF will cancel the employer's reference number.

  • Termination Of Liability To Contribute For Foreign Workers

Beginning 1 September 2007, the liability to make EPF contributions for foreign workers will end on the last two (2) months as follows:

  1. Before the expiry date of the employee's work permit, or
  2. Before the expiry date of the employee's work extended work permit.
  • Offences And Penalties Be A Responsible Employer

Know the consequences of your actions

Employers are legally required to make EPF contributions as spelt out in the EPF Act 1991 as well as the KWSP 1991 Rules and Regulations. Failure to comply is subject to penalties as listed below.

Section

Offences

Penalties

41(1)

An employer who fails to register with EPF within 7 days from the date he employs an employee.

Imprisonment term not exceeding 3 years or a fine not exceeding RM10,000 or both.

43(2)

Failure to make contribution on or before the 15th day of the month.

59(a)

Make false statement orally or in writing
 

Section

Offences

Penalties

48(3)

Deducts the employee's share of contributions from the wages and fails to pay to EPF.

Imprisonment term not exceeding 6 years or a fine not exceeding RM20,000 or both.

47(1) & 47(2)

Deducts from the wages of any employee as part of the employer's share of contribution.

 

Section

Offences

Penalties

41(3)

Fails to notify the EPF within 30 days from the date he ceased to have any employee.

Imprisonment term not exceeding 6 months or a fine not exceeding RM2,000 or both.

42 (1)

Fails to furnish the statement of wages to his employee.
 

Section

Offences

Penalties

46(1)

Failure of the Company's Director, Partner of the Firm or an Association of Persons to pay the outstanding EPF contribution.

Claims may be filed in court adn actions that can be taken against you:

  • Bankruptcy action
  • Seizure & sale of assets
  • Retention of passport

Section 39 - The EPF Board may apply to the Immigration Department to prevent any company directors / partnership of firms / business owners from if the company / firm fails to pay the contribution as set.

For complete definition of the above section, kindly refer to the EPF Act 1991.
 

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