Mandatory EPF Contributions for Non-Malaysian Citizen Employees: What Employers Need to Know

The Employees Provident Fund (EPF) is stepping up its engagement and consultation efforts with employers and key stakeholders in preparation for a major policy change. Starting with wages for October 2025 (contribution month of November 2025), employers will be required to make mandatory EPF contributions for non-Malaysian citizen employees.

Key Details of the New Legislation

• Effective Date: Wages for October 2025 (contribution month November 2025).
• Contribution Rates: 2% of monthly wages by the employer and 2% by the employee.
• Who is Covered: All non-Malaysian citizen employees working in Malaysia (excluding domestic servants*), who hold a valid passport and an employment pass issued by the Immigration Department of Malaysia.

Until now, EPF contributions for foreign employees have been optional. This expansion represents an important step in ensuring that all workers—regardless of nationality—have access to social protection, aligning with Malaysia’s broader goal of fostering fairness and equity in the labour market.

What Employers Should Do Next

Employers are required to register their companies with the EPF to ensure smooth compliance with the new mandate. Registration can be completed:

• Online via the official EPF website
• In person at any EPF office nationwide

A dedicated page will soon be available on the EPF website, providing:

• Implementation guidelines
• Frequently Asked Questions (FAQs)
• Regular updates for employers and employees

Why This Matters

This expansion of mandatory coverage is a significant milestone for Malaysia’s labour market. By extending EPF contributions to non-Malaysian citizens, the government is strengthening social protection and creating a more equitable framework for both local and foreign workers.

Find Out More

For more information, visit the EPF website
or contact the EPF Contact Centre at 03-8922 6000.

Source: KWSP