Lower EPF contribution for foreign workers reduces overall wage expenditure


KUALA LUMPUR: The government’s decision to set the Employees Provident Fund (EPF) contribution rate for foreign workers at two per cent - lower than the initially proposed 12 per cent - helps employers reduce overall wage expenditure.

Prof Dr Yeah Kim Leng, a senior fellow and director of the Economic Studies Programme at the Jeffrey Cheah Institute on Southeast Asia at Sunway University said this move makes hiring foreign workers more attractive for industries as their take‐home pay increases and employers can reduce overall wage expenditure,” he told Bernama.

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