KUALA LUMPUR 3 April 2026 (The Capital Post) – Authorities have uncovered numerous cases of employers making irregular payments to the Social Security Organisation (PERKESO), prompting official warnings that such practices could undermine workers’ social protection coverage.
In a statement released on Friday, PERKESO confirmed that employers in various sectors have been submitting incorrect or incomplete contributions, including underreporting employee wages to reduce the amounts paid into the social security fund. The irregularities were identified during routine audits conducted by the organisation’s enforcement division.
PERKESO emphasised that mandatory contributions are critical to ensuring employees receive the full range of benefits, including workplace injury compensation, disability support and retirement protections. Inaccurate payments not only jeopardise workers’ entitlement to these safeguards but also contravene the Employees’ Social Security Act 1969.
Officials said some employers were found to have exploited loopholes or misinterpreted reporting requirements, resulting in lower contributions than required by law. PERKESO has since issued notices demanding that these employers correct their submission errors and settle outstanding amounts to restore proper social security coverage for affected staff.
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The agency also warned that failure to comply with contribution regulations may lead to enforcement actions under the law, including penalties or prosecution. Representatives urged employers to ensure accurate salary reporting and timely remittances to avoid jeopardising both their legal standing and workers’ welfare.
PERKESO has pledged to intensify its monitoring efforts and expand educational outreach to employers to reinforce compliance with contribution rules, noting that robust participation by both employers and employees is essential to the sustainability of the national social security system.‑The Capital Post
