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[Latest EPF Policy Update] Mandatory EPF Contributions for Foreign Employees Starting October – Are Employers Ready?

Posted LnCoadmin

As announced by the Employees Provident Fund (EPF) of Malaysia on 25 June 2025, the Malaysian government will officially expand the scope of EPF contributions starting October 2025. Employers will be required to contribute to the EPF for all foreign employees working in Malaysia, including those holding work permits and foreign professionals.

Key Highlights of the New EPF Policy

1. Implementation Date

Applicable from salary for October 2025, to be declared by 15 November 2025.

2. Who Will Be Affected?

All non-Malaysian employees with valid passports and Immigration-approved work permits, including:
• Visit Pass (Foreign Worker – excluding domestic helpers)
• Employment Pass
• Professional Visit Pass
• Student Pass
• Residence Pass
• Long-Term Social Visit Pass
❌ Except for domestic workers (e.g. maids, gardeners) are not subject to mandatory contributions. However, employers may opt to contribute voluntarily.

3. EPF Contribution Rates for Employers and Foreign Employees

✅ Non-Malaysian Citizens with Permanent Resident (PR) Status
Below age 60:
• Employer contribution: Remain Unchanged (13% or 12%)
• Employee contribution: Remain Unchanged (11%)
Aged 60 and above:
• Employer contribution: Remain Unchanged (6.5% or 6%)
• Employee contribution: Remain Unchanged (5.5%)

✅ Non-Malaysian Citizens Who Became EPF Members Before 1 August 1998
Below age 60:
• Employer contribution: Remain Unchanged (13% or 12%)
• Employee contribution: Remain Unchanged (11%)
Aged 60 and above:
• Employer contribution:Remain Unchanged (6.5% or 6%)
• Employee contribution: Remain Unchanged (5.5%)

✅ Non-Malaysian Citizens Who Became EPF Members On or After 1 August 1998
Below age 60:
• Employer contribution: Revised to 2%
• Employee contribution: Revised to 2%
Aged 60 and above:
• Employer contribution: Revised to 2%
• Employee contribution: Revised to 2%

4. How to Register Foreign Employees for EPF in October?

EPF will simplify and enhance the automatic member registration process. Employers will not be required to visit EPF counters for registration. (Details will be announced by EPF at a later stage.)

5. When Can Employers Stop EPF Contributions for Foreign Employees?

For foreign employees, employers should cease EPF contributions during the final two months before the employee’s work permit expires.

6. What Facilities and Benefits Can Foreign Employees Enjoy Under the Expanded EPF Scheme?

Upon contributing to EPF, foreign employees will be eligible for selected EPF facilities and benefits, subject to the terms and conditions set by EPF, including:

Partial Withdrawals
• Flexi Account Withdrawal
• Housing Withdrawal
• Health Withdrawal
• Age 50 Withdrawal (available from April 2026)
• Education Withdrawal
• Withdrawal for savings exceeding RM1 million

Full Withdrawals
• Death Withdrawal (excludes Death Benefit)
• Incapacitation Withdrawal (excludes Incapacitation Benefit)
• Leaving Malaysia Withdrawal
• Age 55 & Age 60 Withdrawals

Voluntary Withdrawals
• Contribute above the statutory rate
• i-Sayang (as a contributor)
• Contribute on behalf of another member

Other Facilities / Benefits
• Annual Dividends
• Simpanan Shariah Option
• Inter-account Transfers

**Last Updated on 26.06.2025