Mandatory EPF for Foreign Workers Starts Oct 2025
Update (July 2025): The Ministry of Human Resources has confirmed that mandatory EPF contributions for non‑Malaysian workers will begin with October 2025 wages (payment before 15 November 2025).
Timeline & Coverage
- Effective Date: Wages for October 2025 → first contribution due by 15 November 2025
- Who’s Covered: All non-Malaysian employees below 75 with valid employment/work passes (excludes domestic helpers)
Contribution Details
- Employer: 2% of monthly wages
- Employee: 2% of monthly wages
What Employers Need to Do
- Register non‑Malaysian staff via EPF i‑Akaun or offline ASAP
- Configure payroll to deduct 2% from wages and add matching employer contribution starting Oct 2025
- Ensure payment by the 15th of each following month
- Prepare internal communications: explain EPF deduction, withdrawal rights upon departure, and long‑term saving benefits
Why This Matters
- Equitable Social Protection: Aligns foreign workers with Malaysians for better retirement security
- Legal Compliance: Switching from voluntary to mandatory contributions—failure to comply may lead to penalties
- Business Impacts: Labour-heavy sectors (plantations, construction, manufacturing, tech) will see increased costs
HR Action Checklist
- Conduct EPF registration audit for foreign staff
- Update payroll systems and test Oct‑Nov 2025 run
- Host staff briefing and FAQ session before Oct 2025
- Monitor EPF communications and stakeholder briefings
- Adjust forecasts and project costs by ~2% per foreign worker
This policy begins with October 2025 wages and requires both employer and employee to each contribute 2% to EPF. From record-keeping to payroll and staff education, preparation is key.
Need a ready-made communications template, payroll checklist, or compliance review tailored for SMEs and HR professionals? Let me know, I can prepare one for you.
