Employees Provident Fund

A. Problem Analysis

 1. What was the problem before the implementation of the initiative?
The EPF implemented the e-Contribution Submission facility in December 2012. This was in line with its overall strategy to provide e-services to employers in order for employers to carry out their obligations to EPF and its employees with ease and convenience. This facility allows employers to submit payment and contribution details online through the EPF website. Prior to implementing the e Contribution submission facility, about 90% of EPF employers (370,937 employers) were submitting their contribution details manually using hard-copy contribution forms (Form A) and making payments at EPF/Bank Counters. This contributed to a host of problems as below: Defective Submission forms Manual filled forms could have errors or omissions. Misplaced contribution forms Forms that have been submitted at the EPF/Bank Counters could be misplaced. Errors created through manual data transcription The possibility of errors by manual data transcription is high. Difference in payment and total contribution amount in contribution forms Errors in manual summation. Unpostable contributions due to incorrect particulars Inaccurate member particulars could lead to contributions not being able to credit into members account. Errors in employers and employees contribution shares Manual errors and omissions are bound to happen when manually done. Time taken to credit members contributions This process involves more time than electronic data transcription. Storage, archiving, retrieval and destruction of manual contribution forms Cumbersome physical storage, archiving and retrieval processes as well as physical destruction of forms. Possibility of fraud incidences by manual intervention The possibility of fraud by staff involved in data transcription.

B. Strategic Approach

 2. What was the solution?
This facility was mooted by Y.Bhg. Dato’ Ibrahim Taib,Deputy Chief Executive Officer (Operation Division) through the e-initiative strategic planning process. The implementation was spear headed by Mr. Ong Hock Chye (Head of Operations Transformation and Coordination Department) with the collaboration of other EPF departments such as Contribution Department, Information Technology Department, Service Network Department, Corporate Communication Department, Contact Management Centre, Legal Department, Internal Audit Department, Risk Management Department and Enforcement Department.

 3. How did the initiative solve the problem and improve people’s lives?
The e-Contribution Submission facility was designed to ease employers in submitting their contribution details accurately and at their convenience. The following features greatly contributed to its success: Auto population of employer and employee details based on the last posting month. The contribution form automatically reproduces all details of contributions based on the last posted details in the employer database. Online search for employee details through EPF database In the absence of employees’s particulars, a search can be done to obtain the details through one key input such as an identity number, member number and passport number. Auto-calculation of employers and employee details based on wages amount Based on the wage amount input, a search is done for the correct amount of employer and employee share due to the employee. Auto summation and carry forward for employer and employee contribution amount This feature enables the correct summation by page and cumulative total. Auto upload of contribution details in text file (Comma Separated Value) format This feature allows for employer to upload a CSV text file for submission. Auto crediting of contributions into members account There is no manual data transcription required.

C. Execution and Implementation

 4. In which ways is the initiative creative and innovative?
User Requirement and Functional Specification Document (FSD): Dates: 21/6/2012 – 14/6/2012 Objectives met : All user requirements are finalized and documented. Development: Dates: 17/7/2012 – 8/10/2012 Objectives met: All requirement are developed. Testing (System Integration Test): Dates: 15/8/2012 – 22/10/2012 Objectives met: All file formats tested. Testing (User Acceptance Test - UAT): Dates: 8/10/2012- 7/12/2012 Objectives met: Completed UAT Penetration Test: Dates: 4/12/2012 – 26/12/2012 Objectives met: Tested Good Completion: Cut Over : 27/12/2012 Launched : 28/12/2012 Objectives met: Fully launched as scheduled.

 5. Who implemented the initiative and what is the size of the population affected by this initiative?
The project was entrusted to a working committee comprising of members from the Contribution Department, Operations Transfomation and Coordination Department, Information Technology Department, e-Services Section, Corporate Communication Department and Enforcement Department. The project was monitored by a Project Steering Committee (PSC) headed by Y.Bhg. Dato’ Ibrahim, Deputy Chief Executive Officer (Operation Division).
 6. How was the strategy implemented and what resources were mobilized?
This facility was fully funded by EPF.

 7. Who were the stakeholders involved in the design of the initiative and in its implementation?
The five (5) most successful outcomes are: Fast and accurate crediting of contribution details (Form A) into member’s account No manual data transcription is required. Minimal unpostable contribution With all particulars of employees populated from the previous posted contributions, there will be minimal unpostable contributions. No more physical storage, archiving, retrieval and destruction of manual contribution forms All these will be system enabled. No issue of contribution forms not received or missing. There will be no incidences of forms going missing or not received since they are secured through online Fast, easy and accurate submission of payment and contribution details. Employers can enjoy the benefits of submission anytime anywhere at their convenience

 8. What were the most successful outputs and why was the initiative effective?
This facility was closely monitored by the Project Working Committee (PWC), Project Steering Committee (PSC) and Project Secretariat (Operations Transfomation and Coordination Department).

 9. What were the main obstacles encountered and how were they overcome?
Problem encountered: Reluctance of employers to go online. Solution: Increased communication and education to employers. Problem encountered: Non IT savvy employers. Solution: Hands-on training and visits to employers premises to promote e-Contribution Submission. Problem encountered: Low PC and broadband penetration especially in remote areas Solution: Dedicated PC’s at EPF’s branches for employers to use e-Contribution Submission.

D. Impact and Sustainability

 10. What were the key benefits resulting from this initiative?
Payment and contribution submission can be done anytime and anywhere. Transaction can be done anytime, anywhere and at the convenience of employers. Less cost and time savings for employers. Employers need not come to EPF or bank agents’ counters to make payment and submission of contribution forms. Environment friendly and reduced paper usage. Paperless transaction. Accuracy of contribution details No manual data transcription of contribution details. Quick detection to identify defaulters Defaulters can be automatically traced by the system.

 11. Did the initiative improve integrity and/or accountability in public service? (If applicable)
Yes, e-Contribution submission is sustainable and can be replicable to other agencies such as contribution for Malaysia Social Security (SOCSO), contribution towards Human Resource Development Fund (HRDF), monthly income tax deduction through employers, monthly Hajj Fund savings deductions through employers and monthly loan repayment deduction through employer to banks or cooperatives.

 12. Were special measures put in place to ensure that the initiative benefits women and girls and improves the situation of the poorest and most vulnerable? (If applicable)
Training/Skill development Hands-on approach was found to be more effective in convincing employers to use e-Contribution Submission. Communication Effective dissemination of information to all levels to ensure clear understanding of product. Focus group study To evaluate customer requirements to ensure product meets their demands.

Contact Information

Institution Name:   Employees Provident Fund
Institution Type:   Government Agency  
Contact Person:   Hock Chye Ong
Title:   Transformation Operations and Coordination  
Telephone/ Fax:   03-2616 6324/03-2691 1158
Institution's / Project's Website:  
E-mail:   hcong@epf.gov.my  
Address:   EPF Building, Jalan Raja Laut
Postal Code:   50350
State/Province:   KUALA LUMPUR

          Go Back

Print friendly Page