KUALA LUMPUR: Small-and-medium enterprises (SMEs) affected by the Covid-19 global pandemic can opt to defer and restructure employers' share of the Employees Provident Fund (EPF) contribution for three months.
The EPF said on Thursday the flexibility was offered to eligible SMEs under its Employer Covid-19 Assistance Programme (e-CAP) to support those affected by the Covid-19 global pandemic.
“SMEs can apply for a deferment and restructuring of the employer’s share of EPF contributions for April, May and/ or June 2020.
“The deferred contribution for the respective month of choice can then be settled over a maximum period of three months, ” it said.
The EPF said for SMEs applying to defer their April contributions, their restructured payments will start from July up to a maximum of three months ending September 2020.
For those applying for May, the restructured payments for that month will start from August to October 2020.
As for those applying for June, their restructured payments will start from September to November 2020.
The e-CAP can be applied via i-Akaun (Employer) from Thursday onwards.
“Those SMEs who are interested in having their contributions deferred and restructured for two or three months should also take note that they must ensure their application for the previous month is approved before they can submit a new application.
“The e-CAP measure complements other Covid-19-related initiatives that have been announced by the EPF to support members, preserve livelihoods and assist businesses, including the reduction of the employee’s share of contributions 11% to 7%, the i-Lestari withdrawal facility for members to withdraw savings from Account 2 and the extension of the April 2020 employer’s contribution deadline to month's end, ” it said.
Source : https://www.thestar.com.my/business/business-news/2020/04/23/smes-can-defer-restructructure-share-of-epf-contributions