Malaysia to Enforce EPF Contributions for Foreign Workers Starting October

DHP Radio, Malaysia – Starting this October, Malaysia will require employers and foreign workers to each contribute 2% of monthly wages to the Employees Provident Fund. That’s a game-changer in labor policy.

Until now, EPF contributions for foreign workers were optional. But under the new rule, all non-Malaysians with valid passports and work permits — except domestic helpers — must be covered. This move aims to level the playing field.

The EPF says it’s about fairness and long-term protection for all workers, regardless of nationality. Since Budget 2025, they’ve held 30+ meetings with businesses, agencies, and NGOs to prep for the rollout.

But not everyone’s thrilled. Industry groups say it could spike labor costs. Manufacturers want a two-year delay. Builders warn of added burden. Either way, Malaysia is moving toward universal worker protection — like it or not.

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