My New Employer Check My Previous EPF Deductions

Employees Provident Fund (EPF) deductions are an important aspect of every employee’s financial plan. These deductions are made from an employee’s salary and are used to save for their retirement. But what happens when you change jobs? Can your new employer check your previous EPF deductions?

In this blog post, we will explore this topic in depth and help you understand the importance of EPF deductions and how your new employer may verify them. We will also discuss what employers are not allowed to do with your EPF deductions and how to protect your financial future. This is a crucial topic for anyone who is planning to change jobs and wants to ensure their EPF deductions are protected. So, whether you’re an employee, employer or someone looking for information about EPF deductions, this blog post is for you.

What is EPF Deductions?

Employees Provident Fund (EPF) deductions are a form of savings that are made from an employee’s salary, and are used to provide financial security during retirement. These deductions are mandatory for all employees who earn less than RM5,000 per month, and are usually done on a monthly basis. The Employees Provident Fund (EPF) is a government-run scheme that is managed by the Employees Provident Fund Organization (EPFO).

When an employee’s salary is paid, a certain percentage (12%) of the employee’s salary is set aside as EPF deductions. This percentage is split between the employee (11%) and the employer (1%). The employee’s contributions go into their EPF account, which is a savings account that earns interest. The employer’s contributions go into the employee’s Social Security Organization (SOCSO) account.

The EPF account is a long-term savings plan and the funds in the account can only be withdrawn by the employee upon reaching the age of 55, or in the event of certain circumstances such as retirement, permanent disability or death. The EPF also provides tax benefits, as contributions made to the EPF account are tax-exempt up to a certain limit.

Overall, EPF deductions are an essential aspect of an employee’s financial plan and are important for ensuring financial security during retirement. Understanding how EPF deductions work, and how they can be used, is crucial for all employees.

Can My New Employer Check My Previous EPF Deductions?

When an employee changes jobs, one of the concerns that may arise is whether their new employer can check their previous EPF deductions. The short answer is yes, an employer can check an employee’s previous EPF deductions. However, they must follow certain procedures and guidelines to do so.

The Employees Provident Fund (EPF) is a government-run scheme that maintains records of all EPF contributions made by employees. The EPF also provides an online portal called the “Employees Provident Fund e-Statement” where employees can view their EPF account balance and contributions made by themselves and their employer. Employers also have access to this portal and can check their employee’s EPF contributions by logging in to the portal using their employer’s login credentials.

When an employee changes jobs, their new employer may ask to see their EPF statement as a form of verification. The employee is also required to update their new employer’s details with the EPF. This can be done by submitting a Form KWSP 13A (Application for Update of Particulars) to the EPF. Once the new employer’s details have been updated, the employee’s new employer can view the employee’s EPF contributions online.

It’s important to note that employers are not allowed to use an employee’s EPF contributions for any purpose other than for verification. Employers also can’t ask for an employee’s EPF account number or share the employee’s EPF information with any third party without the employee’s consent.

Overall, while an employer can check an employee’s previous EPF deductions, they must follow certain procedures and guidelines, and they are not allowed to use the information for any purpose other than verification.

The Role of the Employees Provident Fund (EPF)

The Employees Provident Fund (EPF) is a government-run scheme that is designed to provide financial security for employees during their retirement. The EPF is managed by the Employees Provident Fund Organization (EPFO) and is mandatory for all employees who earn less than RM5,000 per month.

The EPF operates by deducting a certain percentage (12%) of an employee’s salary and setting it aside in an EPF account. This percentage is split between the employee (11%) and the employer (1%). The employee’s contributions go into their EPF account, which is a savings account that earns interest. The employer’s contributions go into the employee’s Social Security Organization (SOCSO) account.

The EPF account is a long-term savings plan and the funds in the account can only be withdrawn by the employee upon reaching the age of 55, or in the event of certain circumstances such as retirement, permanent disability or death. The EPF also provides tax benefits, as contributions made to the EPF account are tax-exempt up to a certain limit.

The EPF also provides various services to its members, such as online statement of accounts, online withdrawal services and online investment services. The EPF also provides insurance coverage to its members in the form of the EPF Savings Protection Scheme (SPC) and the EPF Death and Disability Benefit (DDB).

In addition, the EPF plays an important role in promoting the welfare of employees and their families. The EPF provides financial assistance to its members in the form of advances for housing, medical, education and other purposes.

How Employers Verify EPF Deductions

Employers have a responsibility to ensure that their employees’ EPF deductions are accurate and up-to-date. To verify EPF deductions, employers have access to the Employees Provident Fund e-Statement, an online portal maintained by the Employees Provident Fund (EPF) where they can view their employees’ EPF contributions.

The process of verifying EPF deductions begins when an employee starts working for the employer. At this point, the employee is required to provide their EPF account number to the employer. The employer then enters the employee’s details into the EPF’s system and begins making the necessary deductions from the employee’s salary.

Employers are also required to make contributions to the employee’s EPF account on a monthly basis. These contributions are then recorded in the EPF e-Statement. Employers can access the EPF e-Statement by logging in to the portal using their employer’s login credentials.

The EPF e-Statement provides employers with detailed information about their employees’ EPF contributions, including the employee’s contributions, the employer’s contributions, and the interest earned on the account. Employers can also use the EPF e-Statement to check for any discrepancies or errors in the EPF contributions.

In addition, when an employee leaves the company, the employer is required to submit a Form KWSP 13A (Application for Update of Particulars) to the EPF to update the employee’s new employer’s details. This allows the new employer to view the employee’s EPF contributions online and verify it.

It’s important to note that employers are not allowed to use an employee’s EPF contributions for any purpose other than for verification. Employers also can’t ask for an employee’s EPF account number or share the employee’s EPF information with any third party without the employee’s consent.

What Employers are Not Allowed to do with EPF Deductions

Employers have a responsibility to ensure that their employees’ EPF deductions are accurate and up-to-date. However, there are certain things that employers are not allowed to do with their employees’ EPF deductions.

Firstly, employers are not allowed to use an employee’s EPF contributions for any purpose other than for verification. The EPF contributions are meant for the employee’s retirement savings and employers have no right to use it for any other purpose.

Secondly, employers are not allowed to ask for an employee’s EPF account number or share the employee’s EPF information with any third party without the employee’s consent. The EPF account number is considered personal information and employers have no right to access it without the employee’s permission.

Thirdly, employers are not allowed to make any unauthorized deductions from an employee’s salary for EPF contributions. The EPF contributions are mandatory for employees earning less than RM5,000 per month and the percentage of deductions is fixed (12%). Employers are not allowed to make any additional deductions without the employee’s consent.

Lastly, employers are not allowed to misuse the EPF contributions by depositing them into a personal account or using them for any illegal activities. Any misuse of EPF contributions is a criminal offense and the employer will be held liable under the law.

Conclusion: Protecting Your EPF Deductions and Your Financial Future

In conclusion, Employees Provident Fund (EPF) deductions are an important aspect of every employee’s financial plan. These deductions are made from an employee’s salary and are used to save for their retirement. It’s crucial for employees to understand how EPF deductions work and how they can be used to ensure their financial security during retirement.

When an employee changes jobs, one of the concerns that may arise is whether their new employer can check their previous EPF deductions. The short answer is yes, an employer can check an employee’s previous EPF deductions. However, they must follow certain procedures and guidelines to do so. Employers are not allowed to use an employee’s EPF contributions for any purpose other than for verification. Employers also can’t ask for an employee’s EPF account number or share the employee’s EPF information with any third party without the employee’s consent.

The Employees Provident Fund (EPF) plays a vital role in ensuring financial security for employees during their retirement. It is an essential aspect of an employee’s financial plan and provides various benefits and services to its members. It’s important for employees to keep track of their EPF contributions, update their new employer’s details with the EPF when they change jobs and ensure that their EPF contributions are being handled correctly by the employer.

Overall, protecting your EPF deductions is crucial for ensuring your financial future. By understanding how EPF deductions work and what employers are not allowed to do with them, employees can take steps to ensure that their EPF contributions are being handled correctly and that they are on track to achieving their retirement goals.

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