PETALING JAYA: The Employees Provident Fund (EPF) contribution for foreign workers is to be capped at 2%, and must be implemented, says Prime Minister Datuk Seri Anwar Ibrahim.
He said that the initial cabinet proposal was at 12% but with the consideration of the business chambers, it was capped at 2%.
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"When things are better, maybe we will increase to 4%, but for now we keep it at 2%," he said during ACCCIM Chinese New Year Reception 2025 here on Monday (Feb 3).
He added that there was a slight confusion with the announcement, and clarified that the EPF contribution is not cumulative.
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During the reception, in his earlier speech, ACCCIM president Datuk Ng Yih Pyng also urged the government to reconsider the proposed mandatory EPF contributions for non-PR foreign workers and to exempt employers from this requirement.
He said this measure can cause an additional financial burden on employers who are already grappling with rising costs in the current challenging business environment.
