This Ordinance may be cited as the Employees Provident Fund Ordinance, 1951, and shall come into Coinitione ma daotio fgoiteromt aine ter Commissioner different provisions of this Ordinance.
In this Ordinance, unless the context otherwise requires- "approved fund" means a provident fund or other scheme for the beneft of employees established by an employer or by a group of employers and declared by the Board under section 16 of this Ordinance to be an approved fund and includes any scheme in respect of persons in a pensionable employment with the Government of the Federation or of any State or Settlement, and it any doubt arises as to whether any person is in such employment or not the decision of the High Commissioner in Council shall be final; "the Board" means the Employees Provident Fund Board established under section 3 of this Ordinance; "employee" means any person—
(a) who has attained the age of sixteen years;
(b) who has entered into a contract of service or apprenticeship, whether written or oral and whether expressed or implied, to work for an employer in a scheduled employment;
(c) who bas worked for the same employer in such scheduled occupation for a continuous period of not less than three months: and ", emF app sta OI pe Gr sp
EMPLOYEES PROVIDENT FUND. it fund ] Their ith the icil as slrees ie into Lay, by is for erwise 'other by an clared nce to me in t with State hether ecision final; Fund nance; ars; rice or r oral , work mployyer in inuous s: and shall, for all purposes of this Urdınanc e deemed to be four hundred dollars : "employer" means the person with . whom an employee has entered into à contract of service oi
(a) a empilges
(b) any body df persons whether or not statutory or incorporated; ana • (c) the Government of the Federation or of any • any Municipality Htate ur Setrlmente Central miedtricity oard, and, where an employee is employe vith such Government or body or with an or body, in good faith; stated of impiied in an e*" mogane & bontrad o ervsce 'Postmaster-General" means the Postmaster- General, Malaya; "scheduled employment" means employment specified in the First Schedule to this Ordinance;
Establishment of Employees Provident Fund Board. No. 21 OF 1951. "wages" means the remuneration in money due to employee his contract of service or apprenticeship, whether agreed to be paid monthly, weekly, daily or otherwise-
(a) in respect of the normal periods of work to be performed by the employee; or
(b) where payment is calculated in relation to a set task or tasks, in respect of the number of tasks completed by the employee; ol
(c) where payment is calculated in relation to the volume of work done, in respect of the work completed by the employee; together with any allowance payable by the employer employee in respect, either explicitly impliedly, of high cost of living.
(1) For the purposes of this Ordinance there shall be a Board consisting of—
(a) six persons holding office of emolument under the Government of the Federation, one of whom shall be the Postmaster-General;
(b) six persons representing employers not being persons holding oflce of emolument under the Government oi the Federation or ot a State or Settlement or employed with any Municipalty, Board or the Central Electricity Board; and
(c) six persons representing employees, to be appointed by the High Commissioner in Council and the persons so appointed shall elect one of their number to be Chairman of the Board. 2) Ihe Postmaster-Genera shali perform luties as are imposed on him by this Ordinance and . as may be assigned to him by the Board.
(3) Members of the Board shall not be entitled to any remuneration but may be paid such travelling subsistence allowances as may be fixed by the Boaro with the approval of the High Commissioner in Council.
(4) The Board shall be a body corporate and shall, by the name of "The Employees Provident Funo Board," have continuous súccession and shall have and use a common seal.
(5) The Board shall have such powers and shall perform such duties as are given oi imposed by this Ordinance or as may be prescribed by the High Commi writin{ all or ¿
(6)"! the coI
( be a fi herein be pai this ( paymt
(2) all mr in tru shall provi:
(3) Fund and ( after first PII has prot suct genr rest thei
e to ihly, vorks to a nber •the oyer here ıder e of ıder of a any mcil heir зuch dto ard : in have shall EMPLOYEES PROVIDENT FUND. Commissioner in Council, and may by instrument in writing under the common seal delegate to any person all or any of such powers and duties.
(6) The Board shall have powers to make rules for the conduct of its proceedings. 4. (1) For the purposes of this Ordinance there shall Establishbe a fund to be câlled the Employees Provident Fund hereinafter referred to as the Fund, into which shall Fund. be paid all contributions required to be made under this Ordinance and out of which shall be met all payments required to be paid under this Ordinance.
(2) The Board shall be the Trustee of the Fund and all monies belonging to the Funa shall be depositeo in trust in a bank or banks approved by the Board o1 shall be invested by the Board in accordance with the provisions of the Trustee Ordinance, 194.J. No. 66 of 1949.
(3) Interest shall be payable on contributions to the Fund at such rate per annum, not being less than two and one half per centum, the Board may declare after and in respect of each year ending on the thirtyfirst day of December: Provided that—
(a) no such interest shall be payable in respect of he year during which section 7 of this Ordinance comes into force
(b) the Board shall not declare a rate of interest exceeding two and one half per centum per annum until the assets of thè Fund, valued at the market rate, exceed its liabilities by ten per centum; and
(c) if on the last day of any such year the excess of the assets of the Fund, valued at the market rate, over its liabilities is insuffiuent to defrav the payment of such interest it the rate of two and one halt per centum such deficiency shall be met out of the general revenues of the Federation.
(4) Where any deficiency in the assets of the Fund has been met in accordance with paragraph (c) of the srch defesubry shait berephid y the Board totof reneral revenues of the Federation from the assets o: he Fund at the end of the vear following the year ir respect of which such deficiency was met and shall then be a first charge upon the assets of the Fund.
Expenses. Statement of accounts. Rate of contributions. No. 21 OF 1951.
(1) All expenses incurzed in connection with the administration 'of the Fund shall be defrayed out of the monies of the Fund.
(2). All expenses incurred in connection with the appointment of inspectors as provided by section 19 ot tnis Ordinance in carrying this Or dinas Oe ditaetie ashajl Be paallble int of the gentra! revenues of the Federation.
(3) If any question arises as to whether expenses are incurred in connection with the administration of the Fund or in carrying this Ordinance into effect, such question shall be decided by the Hign Commissioner in Council, whose decision shall be final.
(1) The accounts of the Fund shall be audited at least once annually by the Director of Audit who shall submit a report thereon to the Board.
(2) As soon as practicable after the first day of January of each year, the Postmaster-General shall submit to the Board, an account of the revenue and expenditure of the Fund, of contributions received and of withdrawals made and of interest credited to contributors, during the preceding year ending on the hirty-first day of December, together with a statement of the assets and liabilities of the Fund and such account and statement together with the Director of Audit's report thereon, shall be laid before Legislative Council and published in the Gazette.
(1) Subject to the provisions of section 16 of this Ordinance, every employee and every employer of a person who is an employee within the meaning of this Ordinance shall be liable to pay monthly contributions at the rate respectively set out in the Second Schedule to this Ordinance : Provided that the Board may, at 'its discretion and on such terms and conditions as it may impose, authorise an employer, or a class or classes of employers, to pay such contributions at intervals of three months. to pay equal monthly contributions at a exceeds the rate respectively set out in the Second Schedule to this Ordinance by one dollar or a multiple of one dollar.
.the t of eral any nisinto ligh nal. ited who 1 of hall ived d to aent r of e. if a ions Jule ose, 3 of subyyee sach nich ond iple EMPLOYEES PROVIDENT FUND.
(3) Notice of such election shau be given to the Board in such manner and form as may be prescribed by the Board and where any such notice has been given the provisions of this Ordinance shall, in respect of the employer and employee who have elected as aforesaid, apply as if the rate of contribution which such eate reerectively soyee tain ehe SecondSchedre tte rate respectively Schedule to this Ordinance.
Except where otherwise provided in this Ordi- Paymost of nance, the employer shall, in the first instance, be liable to pay both the contributions payable by himselt and also, on behali of and to the exclusion of the employee, the contribution payable by that employee; and for the purposes of this Ordinance contributions paid by an employer on behalf of an employee shall be deemed to be contributions by the employee.
(1) Notwithstanding any contract to the con-Employer's trary, the employer shall not be entitled to deduct from contribution the wages or remuneration of, or otherwise to recover irrecoverable from from, the employee the employer's contribution. employeo.
(2) If an employer deducts or attempts to deduct from the wages or other remuneration of'any employee the whole or any part of the employer's contribution, he shall, on conviction, be liable to a fine not exceeding one hundred dollars in respect of each such employee.
(1) Subject to the provisions of this section, the Recovery by employer shall be entitled to recover from the employee, in accordance with the provisions of this section, the contribution. amount of any contribution payable on behalf of the employee.
(2) The amount of any contribution payable by the employer on behalf of the employee shall, notwithstanding the provisions of any written law or any contract to the contrary, be so recoverable by means of deductions from the wages of the employee due trom the employer to the employee and not otherwise.
(3) No deduction of any contribution shall be made as provided by sub-section (2) of this section—
(a) except at the time wages are paid to the employee; and
(6) other than of the conțribution in respect of the wages which are then being paid : Provided that, subject to such conditions as may be prescribed by the Board, where an employer has, by mistake, omitted to deduct any contribution or part
Penalty for failure to pay contributions. Contributions to be paid into the Fund. Authority for withdrawals from fund. No. 21 OF 1951. of any contribution payable by him on behalt of the employee, then, such contribution or part thereot may be deducted from the wages payable by such employer to the employee not later than six months from the date of the paymeit of the wages in respect of which the contribution or part thereof was omitted to be deducted.
(4) Any employer who contravenes the provisions of sub-section 2) or (3) of this section shail on conviction be liable to a fine not exceeding five hundred dollars.
If any employer fails to pay any contributio which he is liable under this Ordinance to pay he shal be liable on conviction to a tihe not exceeding one hundred dollais.
(1) All sums recovered or collectea on accoun i contributions under this Ordinance shall be pai into, or carried to, the Fund in such manner as the Board shall direct.
(2) The Postmaster-General shall credit employee with the amount of contributions paid in his respect by the 'employer on his bwn behalt and on hehaf n such employee and, at the end of each quarter, with the interest on such amount in such manner as the Board shall direct.
(1) No sum of money standing to the credit of an employee may be withdrawn from the Fund except with the authority of the Board and, subject to any regulations and rules made under sections 20 and 21 of this Ordinance, such authority shall not be given unless the Board is satisted that-
(a) the employee has died; or
(b) the employee has attained the age of fifty-five Boa staI subamc inte P whc or k be, per: forr wit emI ami inte toi trei for em] fro! any wit con sha atti of, prc wh res me
nay ›yer lich , be .ons on red ion 1all one unt aid ach his on ach ich .of ept iny ven five ger ith I a not : hly .of EMPLOYEES PROVIDENT FUND. Board for the withdrawal of money in the circumstances mentioned in paragraphs (d) and (e) of this subosent iof she cohe limited goi sunh emtpexgee ding the interest thereon: Provided further that, in the case of an employee who immediately before being about to leave Malaya or beiore ceasing to be an employee, as the case mar be, had been emploved by the same emplover for a period oi at least tive years fone o tie sectioa, at e deceretion aneionte the withdrawal of the amount of contributions of such employer and the interest thereon in addition to the amount of contributions of such employee and the interest thereon.
(2) When a person withdraws any amount standing to his credit in the Fund, he shall not thereafter be treated as an employee, notwithstanding that, but for the provisions of this sul-section, he would be an employée, for the purposes of this Ordinance.
When authority is granted under section 13 of Withdraw his Ordinance for the withdrawal of any amount als to be made in from the Fund, the whole amount, together with lump sum. any interest that may have accrued thereon, shall be withdrawn ın a lump sum but the withdrawal may be made at any time.
Notwithstanding anything to the contrary Contribucontained in any other written lawtions and deposits
(a) no sum deducted from the wages of an not to be employee under section 9 of this Ordiassigned or attached. nance;
(8) no amount payable by the employer as his contribution; and
(c) no amount standing to the credit ot an) emplovee in the Fund. shall be assignable or transferable or liable to be attached , sequestered or levied upon for, or in respect of, any debt or claim whatsbever. Provided that, where an employee has been convicter f an offence under the Penai Code and his emplove proves to the satisfaction of a competent Court by which the employee was convicted that he has suffered F.M.S. Cap 45, F. of M. No. 32 oi 1948. a definite financial loss as a direct and immediate result of such offence, the Court may order that a payment to such employer be made out of the Fund of a
Approved Funds. No. 21 OF 1951. sum not exceeding the amount of such loss or the amount of employer's contributions already pald or payable to the Fund by such employer on employee's behalf and the interest thereon, whichever is the lesser, and such sum shall thereupon be paid to such employer from the employer's contributions so paid, or so payable, or from both, and from the interest thereon.
(1) Any employer or group of employers who, before the date on which this section comes into force, has established a provident tund or other scheme for he benefit of all or of a group of his or their employee. within one month of such date Iurnish the Board with such particulars of such provident fund or other scheme as the Board may prescribe or in such particular case require and, it alter examining particulars the Board is satisfied that such provident Fund or other scheme provides for an employee benetits not less advantageous to him than the benefits which are provided for an employee by the Fund, the Board may declare such provident fund or other scheme to be an approved fund; and, if the Board so declare, no ontributions shall become payable to the fund by th mployees Ior whose beneht such approved fund har been established or by the employer or employers of such employees in respect of such employees.
(2) Any employer or group of employers who, after the date on which this section comes into proposes to establish a provident fund or other scheme for the benelit oi all or a group oi his or their emplovees shall furnish the Board with such particulars of that proposed provident fund or other scheme as the Board may require and, it after examining such articulars the Board is satisfied that such provident fund on other scheme will provide for an employee benefits more advantageous to him than the benetits which are provided for an employee by the Fund, the Board may declare such provident fund or scheme to be an approved fund; and, if the Board so declare, contributions to the Fund shall, from a date to be fixed by the Board, cease to be payable botn bi the employees for whose benefit such approved fund i stablished and by the emplover ior employers of sucl molovees in respect of such employees
(3) Where, either by reason of the transfer of an employee to an employment in respect of which an approved fund exists or in the circumstances described TI t? a I] I
›r the Lid or chever aid to )ns so ',after force, scheme : their partischeme igsuch vvident aployee benefits nd, the : other oard so a date both by fund is of such r of an nich an escribed EMPLOYEES PROVIDENT FUND. in sub-section (2) of this section, contributions in respect of an employee cease to be payable to the Fund, he amount standing to the credit of such employe hall remain in the Fund to such employee's credit
(4) Where an approved fund is wound up, or where an employee transiers, from an employment in respect ment, the amount standing to each employee's credit, or to such emplovee's credit, in such approved fund approved fund since the date on which section 7 of this Ordinance comes into force and any interest thereon shail, notwithstanding anything to the contrary contained in any other written law, be transferred by the employer to the Fund, and the Postmaster-Gèneral shall credit each suchi employee, such employee, with such amount, in such manner as the Board shall direct.
(5) An employer who has established an approved fund shall-
(a) furnish the Board with such accounts in respect of such approved fund duly certified by an accountant who has been approved under section 134 of the Companies Ordinance of the Straits Settlements as applicable throughout the Federation by virtue of the Companies Ordinance, 1946, as the Board may require;
(b) inform the Board of any proposed amendment to the rules of such approved fund and shall not effect any such amendment except with the written sanction of the Board;
(c) furnish the Postmaster-General with such particulars of those employees for whom such approved fund has been established as may be prescribed by the Board.
(6) The Board may, if not satisfied with the management of any approved fund, revoke any declaration made under sub-section (1) or sub-section
(2) of this section, and apon such revocation, amount of the contributiohs paid since the date on which section 7 of this Ordinance comes into force both by the employer and by his employees shau, notwithstanding anything to the contrary contained in any other written law, be transferred to the Fund in such manner, and the Postmaster-General shall credit each such employee with such part of such amount, as the Board may direct.
Ciyil proceedings to recover contributions. No. 21 OF 1951.
(7) An employer shall be subject to the same penalties in respèct of any deductions or contributions under the rules of an approved fund as are provided by this Ordinance in respect of deductions and contributions relating to the Fund.
(8) Any employer who fails to comply with any requirement or direction of the Board under this section, or who etiects an|amendment to the rules of an approved fund without the sanction mentioned in paragraph (b) of sub-section (5) of this section, shal be guilty of an offence and shall, on conviction, liable to a fine not exceeding three thousand dollars.
(9) Where in the circumstances mentioned in subsections (4) and (6) oi this section, anly amount of contributions paid since the date on . which section 7 of this Ordinance comes into force is transterred to the tund, the employer and the employee concerned may, by mutuar agreement,| elect to transfer to the Fund also such amount standing to the credit of the employee in an approved fund as represents the contributions paid to such fund before the date on which section 7 of this Ordinance comes into force. Notice of such election shall be given to the Board in such manner as may be prescribed by the Board, and if the Board approves such transier, the Postmaster- General shall credit the employee with the amount so transterred to the Fund.
(1) All contributions payable under this Ordinance may, without prejudice to any other remedy, be recoverable by the Board summarily as a civil debt
(2) Proceedings for'the summary recovery as civil debts of any contribution may, hotwithstanding anything in any written law to the contrary, be brought at any time, within three years from the date when the contribution becomes due. authorised biuan, ehide analil e y ly as icil. directions of the Chairman of the Board and any such officer may conduct such proceedings. Conduct of prosecutions and offences by bodies corporate. the Chairman of the Board.
1lns ed "i- LIS in zll to ed he he he :e. id So liril yht en il ers al ch ce EMPLOYERS PROYIDENT FUND.
(2) Where an offence under this Ordinance which has been committed by a bedy corporate is proved to have been committed with the consent or connivance of any director, manager, secretary or other officer of the body corporate, he as well as the body corporate shall be deemed to be guilty of' that offence and shall be llable to be proceeded against and punished according-y.
(1) The High Commissioner may appoint such Aplointeest number of Inspectors as he may consider necessary for of Inspecthe purposes of this Ordinance.
(2) The Commissioner forl Labour and any Deputy Commissioner for Labour, Assistant Commissioner for Labour or Labour Officer may exercise any or all of the powers of an Inspector.
(3) Subject to any regulations made under section 20 of this Ordinance, an Inspector may at any reasonable time and within the local limits for which he is appointed-
(i) enter any premises or place where persons are believed to be engaged as employees;
(ii) make such examination and inquiry as may be necessary for ascertaining whether the provisions of this Ordinance or of any regulations made under section 20, or of any rules made under section 21 of this Ordinance are being or have been complied with in any such premises or place;
(iii) examine either alone or in the presence of any other person with respect to any matters under this Ordinance on which he may son whom he tindsi in any such premises or believe to be or to have been an employee, and require every such person to be examined; iv) exercise such other powers as may be necessars for carrying this Ordinance into effect
(4) Every Inspector appointed under sub-section (1 f this section shall be deemed to be a public servan within the meaning of the Penal Code. T.M.S. Cap 15, F. of M. No. 32of 1948.
Power of High Commisgioner in Council to make regulations. No. 21 OF 1951.
(5) Any person who obstructs any Inspector or any of the officers mentioned in sub-section (2) of this section in the pertormance, of his duties under this Ordinance shall be liable to imprisonment for a term not exceeding six months or to a fine not exceeding lve hundrea dollars or to both such imprisonment anc fine.
The High Commissioner in Council may, aiter seeking the advice of the Board, make regulations-
(a) to provide ior the manner of collection of contributions and any mattrrs incidental thereto;
(b) to provide for the nomination by an employee oI the persons to whom any amount standing to his credit in the Fund at the time of his death is to be paid at his death, for the manner in which such nomination may be revoked and for the circumstances in which it is to be treated as having ceased to be operative and for the payment of such amount to the nominee so nominated;
(c) to provide that, subject to the regulations, probate or other proof of title of the personal representatives deceased employee may be dispensed with in the case of any amount standing to the credit of such employee in the Fund and that such amount may be paid or distributed to or among the persons appearing in the manprovided by the regulations to be beneficially entitled to the persona. estate of the deceased employee, whether under any nomination as aforesaid or by law, or as next of kin or otherwise, or to or among any one or more of such persons exclusive of the others;
(d) to provide that any amount not exceeding one thousand dollars standing to the credit the estate of the deceased employee has been paid;
I any f this r this , term edin tan after ions— t and atters ployee stand- = time ih, for 1s iy ceased f such 1; itions, ceased te case dit of t such to or : manto be estate under aw, or mong lusive ng one credit nay be uction due on se has •. EMPLOYEES PROVIDENT FUND.
(f) for carrying out the provisions of this Ordinance!
The Board may, in addition to the other duties fower of the mposed and powers conferred upon it under thi make rules. )rdinance, make rules
(a) to provide for—
(i) the return of contributions under this con-
(b) to provide for the keeping of books, accounts or records by employers;
(c) to provide for the disposal of amounts which ine unClainded, unpaid or otherwise remain
(d) to provide for the appointment ot medica. boards for the purpose of paragraph (C) 01 Ordinance and for such other purposes as
(e) to prescribe thé procedure for the withdrawa. of amounts from the Fund;
(f) to prescribe the evidence to be produced and he person, oticer or authority to wnor such evidence is to be produced tor th purposes of section 13 of this Ordinance;
(9) to prescribe the procedure to be followed when contributions are deposited by the employer in the Fund;
(h) to provide, in |cases where an employee l employed concurrently by twc more the extent of the obligation o mployess, yeis ext eot ayment of cobtriba tions under this Ordinance;
Power of High Commissioner in Council to amend the First Schedule. No. 47 of 1950. No. 21 OF 1951.
(i) to prescribe the returns to be made by employers, and the forms and registers to be used, in the carrying out provisions of this Ordinance; and
(j) to prescribe adything which under this Ordinance may be prescribed by the Board.
(1) The High Commissioner in Counci may, after seeking the advice of the Board, amend, by order, the First Schedule to this Ordinance.
(2). Any order made under this section shall be laid on the table of the Legislative Council, and shall not come into force until such date as may be specified in a resolution of the Legislâtive Council approving such order. FIRST SCHEDULE. (Section 2.) 1. Employment on any estate over twrenty-five acres in extent. 2. Employment on any mine where ten or more employees are employed. 3. Employment in any premises-
(a) where ten or more employees are employed; and
(b) in which any manual labour is exercised by way of trade or for purposes df gain in or incidental to any of the following purposes, namelyi) the making of ahy article or of part o any article; or
(ii) the altering, repairing, ornamenting, finishing or cleaning of any article; or
(iii) the adapting for saje of any article. . Employment by any person engaged in the business of ransporting of passengers or goods by road and by whom ten o more employees are employed. 5. Employment by any person engagell in the business of loading, unloading of storing of goods and by whom ten or more employees are employed. vords ameloymeed in ane shop, restaurant or theatre, as thes d in the Weekly Holidays Ordinance, 1950 where five or more employees are employed. are empoyeyment in any ofice in wich fve or more employees 8. Employment in any school as a registered teacher. 9.I any st Board When t When t
nade by jisters to ler this e Board. cil may, by order, Il be laid shall not ecified in pproving in extent. ployees are ied; and by way of cidental to of part of ramenting, ticle; or icle. susiness of 1om ten or susiness of en or more 3, as these nee, 1950, employees er. EMPLOYEES PROVIDENT FUND. 9. Employment with the Goverument of the Federation or of any State or Settlement, of with any Municipality or Harbou Board oi with the Central Electricity Board. SECOND SCHEDULE. (Section 7) Amoune mouiges for When the wages do not exceed $1( When the wages excecd § 10 but not $ 30 " :::: : : : Rate of contribution for the month. By the employee. Nil $ 1.50 2.00 3.00 3.50 4.00 4.50 5.00 5.50 6.00 7.00 8.00 9.00 10.00 11.00 12.00 13.00 14.00 15.00 16.00 17.00 18.00 19.00 20.00 ... ... ... : ::: ::::: : By the employer. Nil $ 1.50 2.00 3.00 3.50 4.00 4.50 5.00 5.50 6.00 7.00 8.00 9.00 10.00 11.00 12.00 13.00 14.00 15.00 16.00 17.00 18.00 19.00 20.00
Source: Laws of Malaysia, Attorney General's Chambers of Malaysia (lom.agc.gov.my). Not a copy of the Gazette printed by the Government Printer (Interpretation Acts 1948 and 1967, s 61).