KUALA LUMPUR (Feb 3): The government is drafting an amendment to the Employees Provident Fund (EPF) Act 1991 to enable the implementation of a mandatory 2% EPF contribution rate for foreign workers.

The Bill is expected to be tabled in Parliament during the current sitting, said Human Resources Minister Steven Sim. The new sitting, which began on Monday, will last for 18 days, until March 6.

In a statement, Sim said the proposed mandatory 2% EPF contribution rate for foreign workers will be matched by a 2% contribution from employers.

This rate will remain in place until further review, considering future suitability, he added.

"Further details on the implementation of this mandatory contribution will be discussed in the upcoming Cabinet meeting," Sim added.

Earlier on the same day, Prime Minister Datuk Seri Anwar Ibrahim, at a Chinese New Year reception, announced the government's plan to implement the EPF contribution for foreign workers at a mandatory rate of 2%.

Anwar, who also serves as finance minister, said the rate is lower than the 12% that was originally proposed.

Sim, meanwhile, reiterated that this measure is to enhance fairness in the labour market by ensuring social protection for all workers, in line with international standards, such as Article 68 of Convention 102 of the International Labour Organization (ILO), which guarantees equal rights to social protection for non-citizens.

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