The Employees Provident Fund (EPF) has officially announced a major update that affects all employers in Malaysia hiring non-Malaysian citizen employees. Effective October 2025 (contribution for November 2025), EPF registration and contributions are now mandatory for this group of workers, in accordance with the latest guidelines issued by EPF.
Who Is Affected?
This update applies to all non-Malaysian citizen employees who:
- Possess a valid passport and work pass issued by the Immigration Department of Malaysia
- Are below the age of 75
- Are not employed as domestic workers (they are excluded from this mandate)
Employers must ensure that they register these employees with EPF and begin contributing from the applicable salary month onwards.
EPF Contribution Rates
Effective from salaries paid in October 2025, the contribution rates are as follows:
- Employer’s Contribution: 2%
- Employee’s Contribution: 2%
These rates are fixed and mandatory for all eligible employees falling under this category.
Voluntary Higher Contributions
Employees who wish to contribute more than the gazetted rate have the option to do so. Here’s how:
- The employee must complete and submit the KWSP17A / 18A (AHL) form to their employer.
- The employer will then submit the application via EPF i-Akaun (Employer).
This option allows employees to build their retirement savings at a faster rate, while still maintaining compliance with EPF regulations.
What Employers Need to Do
If you’re an employer, here’s what you need to ensure:
✅ Identify all your non-Malaysian citizen employees with valid work passes
✅ Register them under EPF before the October 2025 salary cycle
✅ Start contributing the mandatory 2% for both employer and employee
✅ Encourage employees who want to contribute more to submit the proper forms in advance
✅ Avoid delays to prevent penalties for non-compliance
Where to Get More Information
For full details, you can refer to the official EPF announcement here:
🔗 Contribution For Non-Malaysian Citizen Employees
Final Thoughts
This is a significant move towards ensuring retirement security for all employees in Malaysia, regardless of citizenship. If you employ non-Malaysian workers, it’s crucial to update your HR and payroll systems immediately to stay compliant and avoid any enforcement issues down the road.
Need help updating your payroll system to accommodate these changes? Reach out to us — we’re here to help.
