Malaysia’s Social Security Organisation (PERKESO) has intensified enforcement efforts against employers and platform providers failing to register workers or make mandatory contributions, issuing nearly 2,500 compound notices since July. Deputy Chief Executive (Operations) Azirruan Arifin disclosed that 2,457 compound notices, totaling RM1.56 million, were issued following inspections of 9,809 premises nationwide.

The compounds were related to offenses under the Employees’ Social Security Act, Employment Insurance Act, and Self-Employment Social Security Act. During a recent phase of enforcement dubbed Ops Kesan 2.0, carried out yesterday, authorities conducted 1,923 inspections across the country, resulting in 309 compound notices by 5:30 p.m. The operation focused heavily on the Klang Valley region, particularly in Pasar Seni, Brickfields, Pudu, and Bandar Baru Ampang.

Azirruan noted common reasons employers cited for non-compliance included claims of ignorance regarding mandatory contributions, while in some cases employees themselves requested that employers refrain from making contributions. The nationwide operation involved about 300 officers from 54 PERKESO offices targeting a range of employers, platform providers, and self-employed individuals.

Since 2020, PERKESO has issued more than 25,000 compound notices summing to RM15 million to non-compliant employers. During the same period, 21,177 cases have been taken to court for related offenses. Under current laws, employers who fail to comply face fines up to RM10,000, imprisonment for up to two years, or both.

Azirruan emphasized the importance of social security coverage given the unpredictability of workplace accidents and emergencies, stating that such benefits protect both workers and their families. He encouraged employees to report employers who neglect their contribution obligations, assuring that all whistleblower identities will be kept confidential. PERKESO commits to carrying out site inspections following complaints to verify workers’ coverage.

The organisation is also collaborating with foreign embassies to ensure foreign workers are properly registered and covered under mandatory schemes. Regarding the gig economy, PERKESO reminded platform operators of their responsibility to register workers and remit contributions without delay. Currently, 1.17 million gig workers are registered, with full enforcement of compliance measures set to commence on October 1.