Mandatory 2% EPF Contributions for Foreign Workers to start from October 2025

On 25 June 2025, the Employees Provident Fund (“EPF”) announced that employers are required to register their non-Malaysian citizen employees, excluding domestic employees, for the purposes of contributing to the EPF from 1 October 2025.1 The contribution rate is 2% each for the employee and employer and applies in respect of wages from October 2025 onwards.
 
The EPF further announced that it is currently streamlining processes for the registration of non-Malaysian citizen employees, including conditions to enable automatic registration and providing notifications on non-Malaysian citizen employees’ registration status, and will be providing updates on the same from time to time.
 
The Employees Provident Fund (Amendment) Act 2025 (“Amendment Act”) was gazetted on 14 May 2025. Our article highlighting the salient changes that will be introduced under the Amendment Act (when it was in the form of a Parliamentary Bill) can be read here.
 
Alert by Foo Siew Li (Partner) and Ashreyna Kaur Bhatia (Associate) of the Employment and Immigration Practice of Skrine.
 

This alert contains general information only. It does not constitute legal advice nor an expression of legal opinion and should not be relied upon as such. For further information, kindly contact skrine@skrine.com.