Malaysian Government fixes EPF contribution rate at 2% for Employers and Foreign Employees
The Employees Provident Fund (Amendment) Bill 2025 (“ EPF Amendment Bill ”) was passed by the Dewan Rakyat (House of Representatives) of the Malaysian Parliament on 6 March 2025.
Mandatory EPF Contributions for Foreign Employees
The salient change proposed to the Employees Provident Fund Act 1991 (“EPF Act”) through the EPFAmendment Bill is to make EPF contributions for foreign employees (i.e. employees who are not Malaysian citizens: (a) whose country of domicile is outside Malaysia; and (b) who enter and remain temporarily under the authority of any pass issued under immigration laws) mandatory. Currently, EPF contribution for foreign employees is voluntary, and for foreign employees below the age of60 years who elect to contribute to EPF, the rate of contribution for the employee is 11% and for the employer, is RM 5.00 per month.
