What is the consequence of not contributing to the EPF?

Employers face penalties for not contributing to the Employees' Provident Fund (EPF) as they are legally obligated to make contributions on behalf of their employees. These penalties can include fines or other regulatory actions, which serve to enforce compliance with the EPF regulations. The EPF is designed to help employees save for retirement, and when employers fail to contribute, it undermines this goal and puts employees' financial security at risk.

In addition to the penalties imposed on employers, there are broader implications for employees, as their retirement savings would be negatively affected by a lack of contributions. However, the primary and immediate consequence falling on one party in this scenario is the penalties levied against employers.