EPF launches e-CAP to support affected SMEs

CORONAVIRUS | The Employees Provident Fund (EPF) has launched the Employer Covid-19 Assistance Programme (e-CAP) to support small and medium-sized enterprises (SMEs) affected by the global pandemic.

In a statement today, chief executive officer, Tunku Alizakri Raja Muhammad Alias said e-CAP gives eligible SMEs the flexibility to apply for a deferment and restructuring of the employer’s share of EPF contributions for April, May and/or June 2020.

He said the deferred contribution for the respective month of choice could then be settled over a maximum period of three months.

According to the EPF, for employers who choose to apply to defer their April contributions, their restructured payments will start from July 2020, ending September 2020.

As for those applying for May, the restructured payments for that month will start from August to October 2020 while for those applying for June, their restructured payments will start from September 2020 to November 2020.

“They can apply for the e-CAP via the i-Akaun (Employer) from today onwards,” it said.

Tunku Alizakri said SMEs are the cornerstone of the Malaysian economy, contributing around RM522 billion to the gross domestic product and providing the largest amount of employment for the domestic labour market.

"Malaysia cannot afford for SMEs to collapse, as this will have far-reaching effects; from larger corporations that will face severe supply chain disruptions, to individuals whose jobs will be at stake," he said.

To be eligible for the e-CAP, SME employers must have 200 employees or less on payroll and ensure that all monthly contribution payments (both employee and employer portions) up to February 2020 are in order.

Employers must also ensure that the employees’ share of the payment for the contribution month applied for (April, May or June) has been paid, the EPF said.

Employers who choose to apply for e-CAP are also reminded that dividends on late payments would still apply, though the EPF would consider a waiver or reduction in late payment charges on a case-by-case basis.

- Bernama