Human Resources Minister Sivakumar pointed out that the mandatory Employee Provident Fund (EPF) contribution rate for foreign employees will be set at 2%, and the employer’s contribution will also be 2%.
He stated in a press release that this contribution rate will maintain until further studies are conducted.
Sivakumar said that the cabinet will also conduct detailed discussions on this measure.
He continued, stating that the ministry will present an amendment to the Employee Provident Fund Act 1991 in the current parliamentary session.
According to the agenda on the official website of the parliament, the current session of the House of Representatives will last for 18 days, with members debating motions for 7 days starting February 4th.
Sivakumar stated that this move is to ensure that all workers enjoy social protection, enhancing fairness in the labor market, such as the provisions of Article 68 of the International Labour Organization (ILO) Convention No. 102, which stipulates that non-citizens also have equal rights to social protection.
Prime Minister Anwar Ibrahim said at the 2025 Chinese New Year Luncheon organized by the Associated Chinese Chambers of Commerce and Industry of Malaysia (ACCCIM) today that the employer contribution rate for foreign workers' EPF will be set at 2%.
He said that compared to the initially proposed 12%, a 2% contribution rate will not be a burden to employers.