Topic 7: Social Security Law – Multiple Choice Questions

The Employees Provident Fund was established in which year?

• 1951

• 1955

• 1969

• 1991

The EPF Act 1991 requires each company to inform the Board within how many days of its establishment?

• 14 days

• 21 days

• 30 days

• 60 days

Under Section 41(1) of the EPF Act, employers must register with the EPF Board:

• Within 30 days of hiring employees

• Before the end of the first week of the first month of paying wages

• After one month of operation

• Within three months of business registration

Failure to register with the EPF Board may result in:

• A) A warning letter

• B) Imprisonment up to 3 months or a fine up to RM10,000 or both

• C) A fine only

• D) Business suspension

In PP v Pontian Bas Berhad (1988), the employer failed to pay contributions and was fined:

• RM3,000

• RM4,320

• RM5,000

• RM10,000

In EPF Board v MS Ally & Co Ltd (1975), the court held that assistant workers were not employees because:

• They worked part-time

• There was no contract of service

• They earned below minimum wage

• They were foreign workers

The savings in Account 1 of EPF can be withdrawn only when:

• Buying a car

• The member reaches 55 or loses capacity

• Paying for education

• After 5 years of service

Account 2 in EPF is meant for:

• Retirement investment only

• Early preparations for retirement such as housing or education

• Business startup

• Travel purposes

Which of the following is NOT a scheme offered by EPF?

• Withdrawal for education

• Payment for physical disabilities

Under the EPF Act, employers who fail to contribute for employees may be imprisoned for:

• Not more than 1 year

• Not more than 2 years

• Not more than 3 years

• Not more than 5 years