MALAYSIAN company directors and business owners who fail to meet their legal obligations to pay employees’ retirement contributions to the Employees Provident Fund (EPF) can now be prevented from leaving the country.
Under Section 39 of the Employees Provident Fund Act 1991, authorities are empowered to impose travel restrictions on defaulters as part of a broader enforcement framework designed to protect workers’ retirement savings.
As of December 2025, the EPF reported that 14,332 company directors were prohibited from travelling abroad due to outstanding contributions.
During the previous year, 2,257 new travel bans were imposed following submissions to the Immigration Department under the same provision.
The restrictions are not limited to directors; business partners and sole proprietors who default on EPF payments are equally liable.
“Employers have a legal responsibility to contribute to the EPF at statutory rates for all eligible employees,” an EPF spokesperson said.
“Failure to comply can result in civil suits, criminal prosecution, and travel restrictions. These measures are necessary to ensure workers’ retirement savings are safeguarded.”
Affected individuals are advised to check their travel restriction status via the Immigration Department’s online portal.
If a restriction appears, it is essential to verify which agency has issued it.
For EPF-imposed bans, individuals must contact the EPF Travel Restriction Unit at [[email protected]](mailto:[email protected]) and provide their full name and identification or passport number.
Restrictions can only be lifted once all outstanding contributions have been fully settled and verified by the EPF.
Employees are encouraged to monitor their EPF contributions closely and lodge complaints if discrepancies arise, including failure to deduct contributions, delayed payments, incorrect contribution rates, or amounts deducted but not remitted.
Complaints should include personal details, employment contract information, salary records, EPF membership number, payslips, and other supporting documents.
The EPF’s Employee Complaint Form Against Defaulting Employer (KWSP 1879) can be submitted at any EPF office to initiate enforcement. - March 14, 2026
