New EPF Requirement for Foreign Employees in Malaysia Starting October 2025

Starting 1 October 2025, significant changes will take effect in Malaysia’s employment landscape with the introduction of mandatory EPF contributions for non-Malaysian citizen employees. The Employees Provident Fund (EPF) has announced new requirements that employers must comply with, aimed at extending retirement protection to a broader segment of the workforce.

What’s Changing?

Under the new regulation, all non-Malaysian citizen employees in Malaysia holding valid work passes excluding domestic workers must be registered under EPF by their employers. This move aligns with Malaysia’s ongoing efforts to enhance social security and standardize employer obligations across all employee segments.

Effective Date

The new EPF contribution requirement will come into force on 1 October 2025. Employers are advised to begin preparations in advance to ensure a smooth transition and timely compliance.

Contribution Rates

Both employers and employees will be required to contribute to the EPF at the following statutory rates:

• Employer share: 2%

• Employee share: 2%

These rates will apply to all eligible non-Malaysian citizen employees covered under the new ruling.

Registration Process

EPF has announced that it is currently streamlining the registration process for non-Malaysian citizen employees. Enhancements in the pipeline include:

• Automatic registration features, and

• Timely status updates for employee registration.

Employers can expect further updates and procedural guidelines from EPF in the coming months. These will be shared through official EPF communication channels.

What Employers Should Do

To prepare for this upcoming change, employers should:

• Review and identify all non-Malaysian citizen employees with valid work passes.

• Ensure these employees are included in the company’s EPF compliance scope.

• Monitor EPF announcements for the latest updates on implementation procedures.

Learn More

For the official announcement and future updates, please visit the EPF’s official website: KWSP/EPF Website – Non-Malaysian Citizen Employees