Statutory contributions are due by the 15th of the following month. Miss it, and the charges add up quickly — on top of the time spent fixing the error.
What the penalties actually are
Late EPF payments incur the dividend rate plus 1% per annum, with a minimum of RM10. Late SOCSO incurs 6% per annum interest, charged daily. Documented cases include RM14,500 in back-pay from a misapplied EPF rate and an RM4,800 KWSP penalty from a single missed deadline.
Why deadlines slip
- Payroll is run manually in spreadsheets, with no fixed cut-off.
- The person who runs payroll is on leave or leaves the company.
- Wage bands change and the wrong EPF employer rate is applied.
- Month-end gets busy and the 15th quietly passes.
How to stay compliant
- Apply the correct EPF employer rate by wage band (13% at or below RM5,000, 12% above).
- Reconcile monthly figures against your submissions.
- Keep audit-ready records of every contribution and payment.
- Put payroll on a fixed schedule — or outsource it so the 15th is handled for you.
A managed payroll partner runs the calculations, files on time, and keeps the records — turning a recurring compliance risk into a routine that simply happens.