KUALA LUMPUR, Dec 19 — Employers will be given an 80 per cent reduction in Late Contribution Charges (FCLB) from today until the end of February 2026, Human Resources Minister Datuk Seri R Ramanan said today.
Speaking at a press conference after completing his first official working visit to the Social Security Organisation (Socso) Tower, Ramanan said Perkeso had agreed to the reduction following discussions, particularly in view of penalties imposed on employers who failed to register workers or pay contributions.
“Recently, penalties were imposed on employers who did not register workers and did not pay contributions.
“So today, following discussions, Perkeso has agreed that the penalties be reduced. We are giving an 80 per cent discount, but payment must be made before the end of February,” he said.
A total of about 300,000 employers are subject to the FCLB, involving penalties amounting to RM157 million for the period from 2018 to 2025 to date.
Ramanan said employers had already been informed previously that penalties amounting to 80 per cent would be imposed for non-payment of contributions.
“All employers must pay, and I hope those who have yet to do so know that they have not paid. Now they can enjoy the 80 per cent discount and make payment as soon as possible before the end of February 2026,” he said.
FCLB is a penalty imposed on employers who fail to register their workers or pay Perkeso contributions on time.
The charge is intended to encourage timely payment and ensure that employees remain covered under social security schemes.
Ramanan said the ministry is mindful of the situation faced by some employers, particularly micro, small and medium enterprises (MSMEs), who are grappling with rising operating costs.
As such, he said the reduction in FCLB for the specified period is appropriate to help ensure business continuity.
