Mandatory EPF Registration for Non-Malaysian Employees Effective October 2025
Beginning October 2025, the Employees Provident Fund (EPF) will implement a new policy requiring mandatory EPF contributions for non-Malaysian employees working in Malaysia. This marks a significant shift from the previous voluntary contribution model and aims to strengthen social protection coverage for all workers under the Malaysia MADANI agenda.
This article outlines what employers need to know and do to comply with the new requirement.
Overview of the New EPF Requirement
Under the updated policy, employers must register and contribute to EPF for all eligible non-Malaysian employees. These employees will receive similar retirement savings benefits as Malaysian citizens, ensuring more equitable protection in the labour market.
Who is Affected?
This policy applies to:
- All non-Malaysian citizens who hold valid passports and employment passes
- Workers in all sectors except domestic service
- New and existing foreign employees in active employment
Passes Subject to Mandatory EPF Contributions:
- Work Permit (Foreign Workers except Foreign Domestic Helpers)
- Employment Pass
- Professional Visitor Pass
- Student Pass
- Residence Pass
- Long-Term Social Visit Pass
Note:
a. The obligation only applies if the employee receives wages in monetary form.
b. For certain passes (e.g., Student, Professional Visitor, Residence, Long-Term Visit), prior work permission from the Immigration Department is required.
Contribution Rates
The EPF contribution rate under the new policy is as follows:
- Employer: 2% of monthly wages
- Employee: 2% of monthly wages
These rates will take effect from October 2025 wages, and payments must be made by the 15th of the following month (i.e., 15 November 2025).
Contribution rates for non-Malaysian workers starting from October 2025 are as follows:
| Non-Malaysian citizen employee category | Contribution Rate starting from October 2025 | |
|---|---|---|
| Less than 60 years old | Has attained 60 years old | |
Non-Malaysian citizen employees who are permanent residents in Malaysia | Remain unchanged | Remain unchanged |
Non-Malaysia citizen employees who became EPF members before 1 August 1998 | Remain unchanged | Remain unchanged |
Non-Malaysian citizen employees who became EPF members after 1 August 1998 | Adjusted EM: 2%, EP: 2% | Adjusted EM: 2%, EP: 2% |
Note: EM – Employer Share, EP – Employee Share | ||
Employer Responsibilities
To comply with the new requirements, employers must take the following actions:
1. Identify Eligible Employees
Review your workforce to determine which employees fall under the new mandate (i.e., all non-Malaysian employees working in Malaysia on valid passes, excluding domestic servants).
Automatic registration: EPF will facilitate and enhance the registration process through automatic registration, so employers are not required to visit EPF offices.
Special cases: In certain circumstances, employers may still register non-Malaysian employees directly at any EPF office.
Domestic sector employees: For non-Malaysian employees in the domestic sector (e.g., maids, cleaners), contributions remain optional. Employers may submit registration at any EPF office if they wish to opt in. The contribution rate, effective October 2025, is also 2% employer + 2% employee for this group.
2. Update Payroll System
Verify that the payroll system and processes are updated to support EPF contributions for non-Malaysian employees.
From October 2025 onwards, ensure:
- 2% deduction from the employee’s monthly wages
- 2% contribution from the employer
- Payment is made through the usual Form A submission and paid by the 15th of the following month
3. Maintain Accurate Records
Employers must keep updated employee records, including:
- Full name, EPF membership number, gender, religion, date of birth
- Identification details (document type & number, passport expiry)
- Work permit type, occupation, employment start/end date, permanent address
- Salary, other remuneration, duration of wage period
- Amount deducted for employee’s share
- Amount paid by employer for employer’s share
This documentation may be requested for audit or verification purposes by EPF authorities.
Payment Channels
Employers can make EPF contributions through the following methods:
Online
- i-Akaun (Employer)
- e-Caruman mobile application
- Internet banking (via selected banks)
Over-the-Counter
- Selected EPF counters
- Bank agent counters (Maybank, RHB, BSN, Public Bank)
Frequently Asked Questions (FAQs)
1. Is EPF contribution now compulsory for all non-Malaysians?
Yes. Starting October 2025, all eligible non-Malaysian employees (excluding domestic workers) must be registered, and both employer and employee must contribute to EPF.
2. What is the contribution rate?
The contribution rate is 2% by the employer and 2% by the employee, based on the employee’s monthly wages.
3. Can the employee opt out of contributing?
No. The contribution is mandatory under the new policy. Opting out is not permitted.
4. Will the foreign employee be able to withdraw EPF savings?
Yes. Non-Malaysian employees may withdraw their savings upon permanent departure from Malaysia, subject to EPF rules.
5. In which situations can EPF contributions for non-Malaysian employees be stopped even if they are still employed?
EPF contributions must be stopped in the last two (2) months before the employee’s pass expires, even if the employee continues to be in service. This rule ensures compliance with EPF’s contribution liability, which is tied to valid immigration status.
6. What should non-Malaysian citizen employee do to maintain the 11% employee’s share contribution rate?
To maintain the 11% employee’s share contribution rate after the effective date, the employee must submit the relevant form to their employer.
The employer must then submit the application to contribute above the statutory rate via i-Akaun (Employer).
Download the form here: Application for Registration Form / Cancellation to Contribute Above the Statutory Rate (Employee Share) KWSP 17A/18A (AHL).
Preparing Ahead
With the deadline approaching, employers are strongly encouraged to:
- Begin the registration process early
- Update payroll systems to reflect the new 2% contribution deductions
- Review employment records and ensure accurate data is maintained
At CentralHR, we assist employers with end-to-end payroll and statutory compliance, including EPF registration, contribution filing, and employee record management. If your company employs foreign workers, we are here to help you prepare for this transition.
