The Employees Provident Fund (EPF) has confirmed that mandatory EPF contributions for non-Malaysian citizen employees will begin with October 2025 wages, for the contribution month of November 2025.

Both employers and employees will be required to contribute 2% of the employee’s monthly wages. This new requirement applies to all non-Malaysian citizen employees in Malaysia, excluding domestic servants, who hold a valid passport and employment pass issued by the Immigration Department of Malaysia.

From Voluntary to Mandatory: What Is Changing

Until now, EPF contributions for foreign employees have been optional. With this change, all eligible non-Malaysian employees must be covered. It marks a major policy shift aimed at providing greater social protection and fairness in the labour market.

The contribution structure follows the existing framework for Malaysian employees, although the rate is fixed at 2% for both the employer and the employee. If your company employs foreign workers, this new rule will require an update to your payroll and compliance processes starting from the fourth quarter of 2025.

EPF Engages Employers Ahead of Policy Rollout

To support the implementation, the EPF has held more than 30 stakeholder engagement sessions. These include consultations with the Ministry of Home Affairs, the Immigration Department, the Federation of Malaysian Manufacturers, and various employer groups and non-governmental organisations.

These sessions are meant to help businesses understand their responsibilities and ensure they are ready when the new rule comes into force. The EPF has emphasised the importance of early awareness and practical readiness across all sectors involved.

Supporting Fairness in the Labour Market

The EPF has stated that extending coverage to foreign workers is part of a broader national goal to improve social protection for all employees, regardless of nationality. This policy is also in line with international standards for fair and inclusive labour practices.

For workers, this means they can begin building long-term retirement savings in Malaysia. For employers, it signals a shift toward more equitable treatment across the workforce and a more structured employment ecosystem.

What Employers Can Do to Prepare

If your company is not yet registered with the EPF, you will need to complete this step before the new rule takes effect. Registration can be done online via the EPF employer portal or in person at any EPF branch. Guidance is available on the official EPF website.

The EPF will also launch a dedicated webpage containing implementation guidelines, frequently asked questions, and regular policy updates. Employers seeking assistance can contact the EPF Contact Centre at 03-8922 6000 or speak with Service Advisors at their nearest EPF office.

• TAGS:
• Employees Provident Fund
• EPF
• EPF Contributions
• Immigration Department of Malaysia
• Non-Malaysian Citizens
• Two Percent