KUALA LUMPUR: Employers who have yet to register companies and workers with the Social Security Organisation (Perkeso) are urged to do so before the 15th Ops Kesan is carried out in June.
Perkeso is offering an amnesty period until May 31, allowing employers to register and contribute voluntarily without penalties.
Its chief executive, Datuk Seri Dr Mohammed Azman Aziz Mohammed, said this is the employer's final opportunity to do so without facing any fines, prosecutions or late payment of contributions (FCLB).
He said this requirement applies to both local and foreign workers, including domestic workers.
"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.
Azman said the Ops Kesan is conducted to ensure all employers who employ at least one employee, register their companies and employees under Sections 4 and 5 of the Employees Social Security Act 1969 as well as Section 14 and 16 of the Employment Insurance System Act 2017.
He said failure to register constitutes an offence punishable by compound fines and prosecutions, with fines up to RM5,000.
"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, adding that employer registration can be done online via the Assist Portal on www.perkeso.gov.my.
According to the statistics of 14th Ops Kesan in 2023, the level of employer non-compliance in contributing under Acts 4 and 800 after the implementation of the amnesty month was 21.73 per cent, compared to 2022, which was 18.95 per cent.
Azman said most of this non-compliance involves small-scale employers who have just started their businesses post-pandemic.
He said Perkeso's findings indicate that employers in the sole proprietorship category recorded the highest number of late registration and contribution errors, besides the lack of knowledge and awareness of contribution obligations among employers.
"Therefore, every year when Ops Kesan is implemented, we see 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.