JOHOR BARU: While there are foreign workers here hoping for a higher Employees Provident Fund (EPF) contribution rate of 2%, others are just happy to be included in the social protection scheme.
Himraj Thapa, a 31-year-old food factory worker from Nepal, said the 2% set by the Malaysian government was quite low compared with the earlier 12% contribution rate proposed by the Cabinet.
“I was happy when I saw the news about the proposed 12% EPF contribution for foreign workers.
“I think changing the contribution rate to 2% is quite low. I was hoping for a contribution rate of around 10%.
“However, since that is the government’s decision, we have to respect it as we are just here to work and earn a living to feed our loved ones back home,” said Himraj, who has been working in Johor for about 11 years.
Another factory employee, Santosh Kumar Tharu, 33, said he was glad that Malaysia is taking steps to safeguard the welfare of foreign workers.
“I have been working in Johor Baru for about six years and this is the first time I have heard about EPF for non-locals.
“It means foreign workers like me will be able to have some retirement savings for ourselves as we are presently sending most of our monthly salary back home,” said the Nepalese, whose job scope includes training new foreign hires at a production plant here.
Meanwhile, an Indonesian who only goes by the name Haryanti, 43, said she does not have high hopes about the EPF contribution for now due to the lack of information.
“My friends and I are still in the dark about the mechanism and when exactly it will be enforced.
“If it happens, it is good news for foreign workers who have to travel far and leave their hometown to seek better job opportunities to feed their families.
“I have been working here for close to a decade. Due to my age, I might even be sent back to my hometown in Lombok before the new ruling comes into effect,” said the mother of two.
Recently, Prime Minister Datuk Seri Anwar Ibrahim announced that the mandatory EPF contribution for foreign workers will be capped at 2% following proposals from commerce chambers.
He added that the Cabinet will discuss the mandatory EPF contribution for foreign workers in its meeting this week, with the Human Resources Ministry expecting to make an official announcement soon.
During the presentation of Budget 2025 last year, Anwar said the government planned to make it mandatory for all non-citizen workers to contribute to the EPF, with implementation to be carried out in phases.
This sparked opposition from businesses, who believe the government should not subject foreign workers to such contributions.
