Employee Welfare Fund (EWF) – Implementation Postponed to 1 October 2026

There has been an official announcement regarding the Employee Welfare Fund (EWF). The implementation, originally scheduled to take effect on 1 October 2025, has been postponed by one year. The new effective date is now 1 October 2026.

Although the effective date has been deferred, organizations are strongly encouraged to begin readiness planning early, as the requirements for registration, contributions, and compliance will remain unchanged once the law comes into force.

The contribution rates, as originally set, will apply on 1 October 2026:

• From 2026 to 2031: Employers and employees will each contribute 0.25% of wages.

• From 2031 onward: The contribution rate for both employers and employees will increase to 0.5% of wages.
  

Please find attached the Royal Gazette of EWF postponement for reference: https://4e98e404-38c7-4504-a30f-293ade33b0b8.usrfiles.com/ugd/4e98e4_587e8556e06449188e5d1f436dfe5962.pdf

If you have any questions or need assistance in preparing for compliance, please feel free to contact us.