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EPF Subscribers May Choose Shariah-Compliant Account Under Amended EPF Act

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KUALA LUMPUR: Contributors to the Employees Provident Fund (EPF) may choose to have their KWSP-I account managed and invested under shariah principles when the Employees Provident Fund Act (Amendment) 2015 is passed.

Deputy Finance Minister Datuk Johari Abdul Ghani said the amendment to the Employees Provident Fund Act 1991, tabled for second reading by him at the Dewan Rakyat today, also provides for the establishment of a Shariah Advisory Committee and and an Investment Panel to ensure shariah compliance.

“In line with the creation of the KWSP-I account, Section 27 will be amended to enable two dividend rates to be announced for EPF contributors,” he said.

The amendment to Section 45 will make an employer who has failed to make monthly EPF contributions on employees’ behalf responsible for paying the dividend on employees’ contributions at a rate determined by the EPF.

“Considering the existence of the two dividends to be announced, the introduction of late payment of dividends will be determined by the Board,” he said.

The term ‘interest’ is also amended to ‘late payment charges’ for all accounts, he added.

The Dewan Rakyat sitting resumes tomorrow.



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