By DayakDaily Team
KUCHING, June 25: The Employees Provident Fund (EPF) has announced that beginning with October 2025 wages, employers and their non-Malaysian employees will each be required to contribute two per cent of the worker’s monthly salary to the EPF.
In a statement today, EPF said the expansion of mandatory contribution coverage will include all non-Malaysian workers in Malaysia—excluding domestic helpers—who possess valid passports and work permits issued by the Immigration Department of Malaysia.
Until now, EPF contributions for non-Malaysian employees have been optional. The move to make them compulsory marks a significant step forward in supporting the national agenda of ensuring that all workers, regardless of nationality, have access to social protection, thereby fostering greater equity and fairness within the labour market.
“To facilitate the transition, employers are required to register their companies with the EPF. Registration can be completed online via the official EPF website or at any EPF branch nationwide,” EPF said.
The EPF noted that since the Budget 2025 announcement last October, which outlined plans to extend mandatory EPF coverage to foreign workers, it has conducted more than 30 engagement sessions with key stakeholders. These sessions have included briefings and consultations with the Ministry of Home Affairs, the Immigration Department of Malaysia, the Federation of Malaysian Manufacturers, non-governmental organisations, and representatives from employer and foreign worker groups.
According to The Edge Malaysia news report, Prime Minister Datuk Seri Anwar Ibrahim had said the implementation would be rolled out in phases.
However, industry groups have voiced concern over the new policy, warning that it may increase labour costs and reduce Malaysia’s competitiveness.
The Federation of Malaysian Manufacturers (FMM) has urged the government to delay the policy’s implementation by two years to allow for more thorough consultations and for businesses to adjust.
Meanwhile, the Master Builders Association Malaysia (MBAM) highlighted the potential financial strain it could place on the construction industry. — DayakDaily
