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Mandatory EPF contributions for non-Malaysian employees to begin in October

Mandatory EPF contributions for non-Malaysian employees to begin in October

The new policy, effective from October 2025 wages, will see 2% contributions from both employers and non-Malaysian workers with valid employment passes.

A new legislation mandating Employee Provident Fund (EPF) contributions for non-Malaysian citizen employees is set to take effect in October 2025, for wages in that month and the contribution month of November 2025. 

In a statement on Wednesday (25 June 2025), the EPF said this is a move aimed at extending social protection to a wider group of workers.

Under the new ruling, both employers and employees will contribute 2% each of monthly wages. This will apply to all non-Malaysian workers holding a valid passport and employment pass issued by the Immigration Department of Malaysia, with the exception of domestic servants.

To ensure a smooth transition, EPF said it has been actively engaging with key stakeholders. Since the announcement in Budget 2025, it has held over 30 stakeholder engagement sessions, including briefings and consultations with the Ministry of Home Affairs, Immigration Department of Malaysia, the Federation of Malaysian Manufacturers, non-governmental organisations, and various employer and foreign worker groups.

This comprehensive engagement effort is intended to ensure that the implementation of the new policy is supported by a high level of operational readiness across the ecosystem. At the same time, it is designed to raise awareness among employers and employees, while providing clear and accessible information on registration procedures and contribution payments.

EPF contributions for non-Malaysian citizen employees have so far been optional. With the upcoming shift to mandatory coverage, Malaysia is taking a step towards strengthening social protection for all workers.

Employers must register their companies with the EPF to facilitate a smooth transition and ensure compliance with the expanded mandatory contribution coverage for non-Malaysian citizen employees. Registration is available online through the official EPF website or at any EPF branch nationwide.

The EPF added that employers and all stakeholders will soon be able to refer to a dedicated page on the EPF website, which will serve as a central resource for implementation guidelines, frequently asked questions, and regular updates.

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