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2% EPF Contributions For Foreign Workers To Begin In October 2025

Important update for all employers.
Malaysia is taking a step forward to strengthen social protection and fair labour practices for all workers.

New policy for non-Malaysian citizen employees

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

Under this new policy, both employee and employer contribution rates will be set at 2% of monthly wages.

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KWSP EPF
For illustration purposes only. Photo by WeirdKaya.

In line with national and international goals

According to the post shared on EPF Facebook page, the expansion of mandatory EPF coverage supports the national agenda of promoting inclusive social protection and creating a fairer labour market.

It also brings Malaysia in line with international standards, supporting the country’s global competitiveness.

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More than 30 engagement sessions held

To date, over 30 stakeholder engagement sessions have been conducted to ensure alignment between the policy direction and the level of readiness.

These sessions aim to raise awareness among employers and employees, and to provide clear and easily accessible information on the mechanisms for employer and employee registration, as well as contribution payments.

Employers must register with EPF

EPF 4 (1)
For illustration purposes only. Photo by WeirdKaya.

All 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.

For more information, you may visit www.kwsp.gov.my.

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