KUALA LUMPUR: Mandating Employees Provident Fund (EPF) contributions for foreign workers would help the government with record-keeping and at the same time protect the interests of local workers, says Prime Minister Datuk Seri Anwar Ibrahim.
He said mandating a 2% contribution for foreign workers will allow the government to register foreign workers by using financial institutions and the EPF.
He added that foreign workers would also be able to withdraw their savings at the end of their employment period here.
“We are bound by international standards, such as Article 68 of Convention 102 of the International Labour Organisation (ILO),” he said during the Prime Minister’s Question Time in the Dewan Rakyat on Tuesday (March 4).
He said close to 70 countries require similar contributions from foreign workers.
“We have set the contribution at a minimum rate of 2% because we feel that it would not be a burden,” he added.
When presenting Budget 2025, Anwar announced the proposal to mandate all non-citizen workers to contribute to the EPF to ensure fair treatment for all workers regardless of nationality.
Anwar said this does not mean that EPF is not paying attention to locals,
“We have introduced voluntary contributions in 2024 for the self-employed whereby 1.2% of contributors have made voluntary contributions that will benefit them. We have I-Saraan and I-Suri for the informal sector, especially housewives. This government incentive has hit RM4.16 mil,” he said.
He was responding to a question from Chiew Choon Man (PH–Miri) on the EPF's contributions to foreigners and whether this would burden employers and divert the EPF's attention from Malaysians.
On Saturday (March 1), the EPF declared a dividend rate of 6.3% for conventional savings with a total payout amounting to RM63.05bil and a similar rate for Syariah savings with a payout totalling RM10.19bil.
This is the second-highest dividend payout for Simpanan Shariah since its inception in 2017.
