Mandatory EPF Contribution Takes Effect

Mandatory EPF Contribution Takes Effect

Contributions are now mandatory (2% employer, 2% employee) for most non-Malaysian citizen employees (excluding domestic servants), effective from the October 2025 salary.

1 October 2025 – The Employees Provident Fund (EPF) today announced that mandatory contributions for non-Malaysian citizen employees will take effect beginning with wages for October 2025, corresponding to the contribution month of November 2025.

Under this new policy, both employers and employees are required to contribute 2% of monthly wages. The coverage applies to all non-Malaysian citizen employees working in Malaysia, excluding domestic servants1, who hold a valid passport and employment pass issued by the Immigration Department of Malaysia.

“The expansion of mandatory contributions to non-Malaysian citizen employees represents a significant step for the EPF in enhancing the national social protection agenda. It addresses important gaps in social security coverage by supporting fairer labour market practices and providing access to retirement savings for workers of all nationalities.”

Over the past several months, the EPF has engaged extensively with government ministries and agencies, employer and foreign worker representatives, non-governmental organisations, and other stakeholders to ensure the smooth implementation of the new legislation.

To strengthen readiness, the EPF has also partnered with the Immigration Department of Malaysia to enhance data and system integration. This collaboration enables the secure exchange of information on valid work pass holders, including Visitor’s Pass (Temporary Employment) and Employment Pass, through existing infrastructures and agreed procedures. The initiative enhances the capacity and effectiveness of implementing mandatory contributions for non-Malaysian citizen employees

Employers who have not registered with the EPF are required to register their companies to ensure compliance and a smooth transition. Employer registration can be completed online via the official EPF website or at any EPF office nationwide.

Registration of non-Malaysian citizen employees as EPF members that involve those who hold a Visitor’s Pass (Temporary Employment) and Employment Pass will be carried out automatically without the need to be present at an EPF office. Employers may check online through i-Akaun (Employer) to ensure the registration is accurate. For holders of other passes, registration and record updates can be done at EPF offices as usual. Employees are advised to complete the EPF member registration by updating their thumbprint records at the nearest EPF office starting January 2026.

Employers and stakeholders may refer to a dedicated page on the EPF website, Contribution For Non-Malaysian Citizen Employees, for more information.

Official Source: KWSP