EPF for Foreign Workers? Here’s What Employers Need to Know
KWSP Malaysia has announced that starting October 2025 wages (contribution for November 2025), employers and employees will each need to contribute 2% into their Employee Provident Fund (EPF). But why non-Malaysian suddenly have the pension privilege that only Malaysians can enjoy now?
KWSP Malaysia believes that by making EPF contributions mandatory for non-Malaysian employees, this will encourage fairness between Malaysians and non-Malaysians and provide equal treatment to all workers in Malaysia. Regardless of nationality and in line with international social security standards.
Who is Eligible to Contribute?
Non-Malaysian employees aged 75 years below who have been employed starting from the October 2025 salary and possesses one type of passes listed below are required to contribute to EPF:
- Visitor’s Pass (Foreign Employees except Foreign Domestic Helpers)
- Employment Pass
- Professional Visitor Pass
- Student Pass
- Residence Pass
- Long-Term Social Visit Pass
What is The Contribution Rate For Employers and Employees?
Employer Share 2%
Employer needs to contribute both employee and employer’s share to EPF. The employee’s share will be deducted from their salary and must be paid in only ringgit denominations and without any cent value.
Employee Share 2%
Employees don’t need to re-register as long as their member account is still active. They can use their existing EPF member number for any dealings with EPF. However, new members must use KWSP form 3 to apply for an account.
When, Where and What To Contribute?
The mandatory EPF contribution will be extended to non-Malaysian employees starting from their October 2025 salary, with the first contribution to be expected latest by 15 November 2025.
However, if the non-Malaysian employee’s pass expires within two months, employers are allowed to stop contributing into the non-Malaysian employee’s fund even if the employee is still in service to the company.
Employers can register with the EPF through the following channels to set up contribution for non-Malaysian employees:
- Online via the EPF website for companies registered under the Companies Commission of Malaysia (SSM), except for Limited Liability Partnerships (LLP). Online registration is subject to terms and conditions.
- In person at any nearest EPF counter.
Mandatory Contribution Rates For Non-Malaysian Citizen Employees and Their Employers
Contribution rate for Non-Malaysian Citizen starting October 2025 (Note: EM – Employer Share, EP – Employee Share) | ||
Less than 60 years old | Has reached 60 years old | |
Non-Malaysian Citizen Employees who are Permanent Residents in Malaysia | Remain Unchanged EM: 13% or 12%, EP: 11% | Remain Unchanged EM: 6.5% or 6%, EP: 5.5% |
Non-Malaysian Citizen Employees who became EPF members before 1 August 1998 | Remain Unchanged EM: 13% or 12%, EP: 11% | Remain Unchanged EM: 6.5% or 6%, EP: 5.5% |
Non-Malaysian Citizen Employees who became EPF members after 1 August 1998 | Adjusted EM: 2%, EP: 2% | Adjusted EM: 2%, EP: 2% |
Did You Know?
Employees can maintain the 11% contributions to their EPF after the effective date by the relevant form: Application for Registration Form / Cancellation to Contribute Above the Statutory Rate (Employee Share) KWSP 17A/18A (AHL)
The employer then must submit the application to contribute more than the mandatory rate via i-Akaun (Employer).
When it comes to EPF contributions, compliance and accuracy are required. Employers’ responsibility now stretched to non-Malaysian employees and can be confusing to keep track if done manually. HRX by IFCA can handle the statutory compliance, accurately calculate the contributions and distribute them correctly.
Not sure if your current system is compliant? HRX always ensures full compliance. Get in touch with us today!
