Image credit: Malaysiakini
SEPANG: Small and Medium Enterprises (SME) that do not have a systematic human resource administration are among the most lax in subscribing to the Social Security Organisation (Perkeso) for their workers, said its chief executive officer Datuk Seri Dr Mohammed Azman Aziz Mohammed, here today.
He said this issue does not arise with big companies which have human resources teams that are aware of the responsibility to have employees covered by Perkeso.
"The problem is not with big employers, but the small employers, such as food vendors and retailers who manage most of the company administration on their own," he said.
He was speaking to reporters at the Kota Warisan business centre, Sepang here today after the 14th Ops Kesan, which is being carried out from July 1 to 31 to track employers who have not registered or subscribed their employees with Perkeso.
All employers, with a minimum of even one employee, must register their company and subscribe their workers to Perkeso, regardless of the salary, as prescribed under the Employees' Social Security Act 1969 (Act 4) and the Employment Insurance System Act 2017 (Act 800).
Earlier this year, Perkeso had given a two-month amnesty between May 1 and June 30 to allow more time and space for employers to register and subscribe their workers before enforcing Ops Kesan.
Mohammed Azman said such employers were not aware of their duty to subscribe part-time workers and often cite excuses like "don't know" and "not sure" when they are tracked down.
"Even part-time workers must have subscriptions, as long as they are working at the premises, it is mandatory to register and have them subscribed. We have the salary schedule to calculate the subscription," he said.
On the 14th Ops Kesan in Sepang, Selangor and Nilai, Negri Sembilan since July 1 to date, he said 1,994 business premises were inspected and 301 Compound Notices under (Act 4) and 87 Compound Notices under (Act 800) issued amounting to RM413,900.
He said failure to register or subscribe to Perkeso carries a compound of RM500 to RM5,000 and employers could be sentenced to a maximum of two years in prison or a fine not exceeding RM10,000 or both, upon conviction.
Source: https://www.nst.com.my/business/2023/07/929509/smes-lax-registering-and-subscribing-perkeso-their-workers