PUTRAJAYA: The government will maintain the proposed mandatory Employees Provident Fund (EPF) contribution rate for foreign workers at two percent each for employees and employers.
Human Resources Minister Steven Sim stated that this rate will be upheld until further studies considering current suitability are conducted in the future.
Further information on the implementation of this mandatory contribution will be detailed in a Cabinet meeting before a bill to amend the EPF Act 1991 is presented in the Dewan Rakyat during this session.
According to the schedule on the official Parliament website, the Dewan Rakyat session will last 18 days, with Members of Parliament debating the motion for seven days starting on Tuesday (Feb 4).
"This measure aims to enhance fairness in the labour market by ensuring social protection for all workers, in line with international standards such as Article 68 of Convention 102 of the International Labour Organisation (ILO), which advocates equal rights for social protection for non-citizens," he said in a statement on Monday (Feb 3).
During the 2025 Budget presentation, Prime Minister Datuk Seri Anwar Ibrahim announced the proposal to mandate all non-citizen workers to contribute to the EPF to ensure fair treatment for all workers regardless of nationality.
Following this, the Finance Ministry proposed standardising the EPF contribution rate for Malaysians and foreign nationals with new employment contracts, meaning employees would contribute 11% while employers contribute 12 % to - 13%.
The Finance Ministry also proposed a phased implementation of the contribution rate for foreign workers and employers with existing contracts, starting at two percent and gradually increasing over six years until it matches the EPF contribution rate applied to all workers in Malaysia. - Bernama
