3rd February 2025 - 1 min read
The Employees Provident Fund (EPF) contribution for foreign workers will be capped at 2% and must be implemented, according to Prime Minister Datuk Seri Anwar Ibrahim.
He explained that the initial proposal put forward by the Cabinet was set at 12%, but after taking into account the concerns of business chambers, the decision was made to limit it to 2%. “When things are better, maybe we will increase to 4%, but for now we keep it at 2%,” he stated during the ACCCIM Chinese New Year Reception 2025.
He also acknowledged some confusion surrounding the announcement and clarified that the EPF contribution is not cumulative.
Earlier in the event, ACCCIM president Datuk Ng Yih Pyng had called on the government to reconsider the proposed mandatory EPF contributions for non-permanent resident foreign workers and to exempt employers from this obligation.
He cautioned that this measure could impose an additional financial burden on employers, who are already struggling with escalating costs in an increasingly challenging business environment.
(Source: The Star)
Samuel writes about personal finance and financial news, focusing on how banking updates, policies, and promotions affect everyday money decisions. He enjoys making complicated financial topics easier to follow. Outside of writing, he spends his time watching TV shows and occasionally convincing himself he will only watch one episode.
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