Perkeso urges employers to register before the Ops Kesan kickoff

Employers are urged to register their companies and workers with Perkeso before the start of Ops Kesan on June 15th , said its chief executive, Datuk Seri Dr Mohammed Azman Aziz Mohammed.

Azman highlighted that Ops Kesan aims to ensure all employers with at least one employee register their companies and staff under relevant sections of the Employees Social Security Act 1969 and the Employment Insurance System Act 2017. 

Currently, Perkeso is offering an amnesty period until May 31.

According to Azman, employers had until then to register and contribute voluntarily without facing any fines, prosecutions or late payment of delay contributions (FCLB).

“If employers still fail to do so within the amnesty period, Perkeso will not compromise with them.

“There will be no more exceptions, with enforcement actions to be considered against, through 2024 Ops Kesan,” he said at a press conference here today.

He mentioned that this requirement extends to all workers in Malaysia, regardless of whether they are locals or foreigners, including those employed as helpers.

“Employers will also incur FCLB at a rate of six per cent per annum on each day of late payment.

“Employers can also be prosecuted in court and if found guilty, can be fined up to RM10,000 or imprisoned for up to two years or both,” he said, NST reported. 

He further informed me that employer registration can be done online via the Assist Portal at www.perkeso.gov.my.

In the 2023 statistics from the 14th Ops Kesan, employer non-compliance in contributing under Acts 4 and 800 rose to 21.73 per cent after the implementation of amnesty month, compared to 18.95 per cent in 2022.

Azman noted that the bulk of non-compliance stems from fledgling businesses emerging after the pandemic.

He revealed that Perkeso’s data reveals that sole proprietors top the list for late registrations and contribution errors, and lack of awareness about employer obligations.

He further said that every year when Ops Kesan was implemented, they saw the rate of non-compliance among employers still rising, thereby neglecting the fundamental rights of workers to Perkeso.

“Based on Perkeso’s statistics until March 31, nearly 1.55 million employers have registered with Perkeso under Act 4, but the number actively contributing, with at least one contribution within a period of 12 months, is 600,819 employers.

“The total number of active workers is approximately 9.7 million people,” he said.