THE Employees Provident Fund (EPF) has launched the Employer Covid-19 Assistance Programme (e-CAP) to support small and medium enterprises affected by the pandemic.

In a statement today, CEO 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.

He said the deferred contributions can then be settled over a maximum of three months.

EPF said for employers who choose to defer the April contribution, the restructured payment will begin in July and end in September. Those who apply for May will have the payment period begin in August, and for June applications, it will start in September.

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

Tunku Alizakri said SMEs are the cornerstone of the Malaysian economy, contributing RM522 billion to gross domestic product and serving as the largest employer for the domestic labour market.

“Malaysia cannot afford the collapse of SMEs 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.”

To be eligible for e-CAP, SMEs must have a maximum of 200 employees on the payroll and ensure that all monthly contribution payments – both employee and employer’s portions – up to February are in order.

Employers must also ensure that the employee’s payment for the contribution month to be deferred has been made, said EPF.

SMEs that choose to apply for e-CAP are reminded that dividends on late payments still apply, though EPF will consider a waiver or reduction in late payment charges on a case-by-case basis. – Bernama, April 23, 2020.