Cover image via New Straits Times
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Starting this October, it will be compulsory for non-Malaysian workers and their employers to contribute to the Employees Provident Fund (EPF)
According to EPF, this new mandate supports the national agenda of promoting inclusive social protection of foreign employees and creating a fairer labour market.
Under the new policy, both employers and foreign employees will each contribute 2% of the employee's monthly wages.
"The law will take effect from October 2025 salary payments, corresponding to the November 2025 contribution month," it said in a statement on Wednesday, 25 June.
The new requirement will apply to all foreign workers employed in Malaysia, excluding domestic helpers, who hold valid passports and work permits issued by the Immigration Department.
Currently, EPF participation by non-Malaysian workers is voluntary
EPF said over 30 stakeholder engagement sessions have been held since the announcement of Budget 2025, involving the Home Affairs Ministry, the Immigration Department, the Federation of Malaysian Manufacturers, non-governmental organisations, and representatives from employer and foreign worker groups.
This is to raise awareness and ensure that all employers and employees have clear, accessible information to prepare for the change.
EPF also urged employers of foreign workers to register their companies early to ensure a smooth transition and full compliance with the new rule.
"The expansion of mandatory EPF coverage to non-Malaysian employees 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," it said.
