KUALA LUMPUR (June 25): The Employees Provident Fund (EPF) on Wednesday announced that starting with October’s wages this year, employers and their non-Malaysian workers must each contribute 2% of their monthly pay.

In a statement, the provident fund said the new rule will cover all non-Malaysian workers in Malaysia (except domestic helpers) who have a valid passport and work pass from the Immigration Department.

Up until now, EPF contributions for non-Malaysian citizen employees have been optional. The move to make them mandatory marks a significant step towards “supporting the national agenda of ensuring social protection for all workers, regardless of nationality, have access to social protection, thereby fostering greater equity and fairness within the labour market," EPF said.

“Employers are required to register their companies with the EPF to ensure a smooth transition and compliance with the expansion of mandatory EPF contribution coverage to non-Malaysian citizen employees.

"Employer registration can be done online via the official EPF website or at any EPF office nationwide,” the EPF added.

Since the Budget 2025 announcement in October last year on extending mandatory EPF coverage to non-Malaysian employees, the EPF has held over 30 engagement sessions with key stakeholders, including government agencies, employers, non-governmental organisations and foreign worker representatives. Prime Minister Datuk Seri Anwar Ibrahim said the mandatory EPF would be implemented in phases.

Industry groups, meanwhile, have raised concern over the new foreign labour policy, warning it could raise labour costs and hurt Malaysia's competitiveness. These include the Federation of Malaysian Manufacturing, which has called for a two-year delay to allow for proper consultation and business adjustments, and the Master Builders Association Malaysia, which highlighted the potential cost burden on the construction sector.