The Employees Provident Fund (Amendment) Act 2025 (“
Amendment Act”) which amends the Employees Provident Fund Act 1991 (“
Principal Act”) has come into operation on
1 October 2025.
1
The most salient change made to the Principal Act under the Amendment Act is the introduction of mandatory EPF contribution for foreign employees (i.e. employees who are not Malaysian citizens: (a) whose country of domicile is outside Malaysia; and (b) who enter and remain temporarily under the authority of any pass issued under immigration laws).
The Principal Act, as amended by the Amendment Act, stipulates that the rate of contribution by the employer and the foreign employee shall each be 2% of the employee’s monthly wages.
Our article on the Amendment Act, while it was in the form of a Parliamentary Bill, can be accessed
here.
Alert by Sara Lau (Partner) of the Employment and Immigration Practice of Skrine