Reconsider 2% EPF contribution cap for non-citizen employees

FAMILY Frontiers refers to the recent government decision to mandate a 2% Employees Provident Fund (EPF) contribution by employers for non-citizen employees. It is commendable that Malaysia is finally recognising the rights of non-citizen employees in the country and the importance of social protection for all groups of people.

However, capping the mandatory employer contribution at just 2%, which is significantly lower than the 12%-13% required for Malaysian employees, raises serious concerns about the financial security, retirement adequacy, and long-term welfare of non-citizen workers. This includes non-citizen spouses of Malaysians, whose families – comprising Malaysian spouses and children – depend on for their financial stability.