Implementation of EPF Contributions for Foreign Workers in Malaysia
The Malaysian government has announced a significant policy reform involving the Employees Provident Fund (EPF). Moving forward, all foreign workers employed in Malaysia will be required to contribute to the EPF. This initiative aims to enhance social protection for the foreign workforce, promote fair employment practices, and align Malaysia’s labour standards with global expectations.
Effective Date
The new regulation will come into effect on 1 September 2024. From this date, employers must register all eligible foreign employees with the EPF and begin the mandatory monthly contributions accordingly.
Contribution Rates
Under the EPF (Amendment) Bill 2025, the contribution rates for non-Malaysian citizen employees are as follows:
- Employer Contribution: 2% of the employee’s monthly wages
- Employee Contribution: 2% of the employee’s monthly wages
These contributions are to be calculated based on total monthly remuneration and remitted to EPF within the statutory deadline.
Implications of Non-Compliance
Failure to comply with the new EPF requirements may result in enforcement actions under the EPF Act, including monetary penalties and legal consequences. Employers are encouraged to review their payroll and HR compliance systems to ensure smooth implementation before the effective date.
Our Commitment
At Chee Tiong & Co, we remain dedicated to helping businesses stay informed and compliant with Malaysia’s evolving regulatory landscape. Our team actively monitors legislative developments to provide timely guidance and professional support, ensuring our clients continue to meet statutory obligations with confidence and integrity.
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