EPF EPF contributions are mandatory for non-Indonesian employees starting October 2025
Starting in October 2025, all employers in Malaysia are required to contribute to the Employee Provident Fund (EPF) for every non-citizen worker who has a valid work permit.
This rule is implemented in line with the government’s steps through the 2025 budget to ensure foreign workers also enjoy organized and safe retirement savings.
This step also aims to strengthen the country’s social protection system to make it more comprehensive regardless of citizenship status.
By implementing this mandatory contribution, these non-citizen workers are not only financially protected in the future, but also create a fairer and more transparent work environment between employers and employees.
Indirectly, this new policy will also increase investor and employer confidence in the workforce ecosystem in Malaysia.
Payment Dates for Employer Duties and Contributions
Employers must start registering non-citizen workers as EPF members and contributing from October 2025. Payment of contributions must be made on or before the 15th of the following month.
For example, for salaries for November 2025, contributions must be completed no later than December 15 2025.
The employer is responsible for paying both portions of the contribution, namely the employer portion and the employee portion and is allowed to deduct directly from the employee’s salary for the Employee Apportionment Portion.
EPF EPF EPF contribution rate
Starting from this implementation, the contribution amounts for non-Malaysian employees are as follows:
- Employer’s Share: 2% of monthly salary
- Employee Share: 2% of monthly salary
This rate applies to all non-citizen workers who have a valid work permit except domestic workers such as housemaids, cooks, gardeners, nannies, drivers and the like who are exempt from this mandatory contribution.
Non-citizen employees who were permanent residents or registered before 1 August 1998 will remain at the existing contribution rates (i.e. 13% or 12% for employers and 11% for employees).
However, for employees who register after that date, the contribution is 2% for both parties.
Types of eligible work permits
Contributing obligations to all non-citizen employees hired starting in October 2025 and holding one of the following permits:
- Temporary work visit card (except for foreign helpers)
- Pass Pass
- Visit entrance ticket (Iktisas)
- Student card
- Pas resident
- Long-term social visit ticket
For certain categories such as Ikhtisas, Student Pass, Resident and Long Term Social Visit Pass, a work permit from the Malaysian Immigration Department must be obtained first before donations can be made.
Benefits for non-citizen employees
With the implementation of this mandatory contribution, non-citizen employees will have access to various EPF facilities like local contributors.
This is subject to terms and conditions. Some of these facilities include:
- Partial withdrawals (housing, education, health, flex accounts, etc.)
- Full production (abroad, 55 & 60 years old, disabled, passed away)
- Voluntary contributions and Islamic savings options
EPF annual dividend
Savings transfer facility between own accounts
For partial production at the age of 55 and 60 years, new employees can carry out production starting April 2026.
Registration process and employer responsibilities:
- Employers who employ non-citizen workers should take the following steps:
- Register as an employer in EPF (if not registered).
- Register non-citizen employees as EPF members.
- Pay monthly fees according to the specified rates.
- Maintain and update employee records.
Employers who already employ local workers can use their existing employer number without having to register a new one.
Registration of eligible employees will be carried out automatically by the EPF starting October 2025. Employers only need to confirm employee registration information through the i-Account (Employer) system.
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Registration channel
Entrepreneurs can register via two main methods:
- Online: Via the official EPF website for companies registered with the Companies Commission of Malaysia (SSM).
- Physically: at the nearest EPF branch.
Date of power
This mandatory contribution will come into effect starting October 2025 and the first payment must be made no later than November 15 2025.
Therefore, the implementation of mandatory EPF contributions for non-citizens of Malaysia from October 2025 marks an important step in strengthening the country’s social protection network.
This not only ensures that foreign workers also have the security of future savings, but also encourages employer accountability in providing a more inclusive and organized work environment.
With low contribution rates and automatic registration, this process is designed to be easy and practical for all parties.
Entrepreneurs are advised to make preparations early, while employees are advised to understand the benefits they can enjoy from EPF savings.
This small step will have a big impact on long-term financial stability. This not only impacts individuals but also the country’s economy as a whole.
Source: kwsp.gov
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The post Mandatory EPF Contributions for Non-Indonesian Employees appeared first on Siakap Keli.
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