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Malaysia Introducing Mandatory Employees Provident Fund Contributions for Foreign Employees

11 March 2025

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Proposed Changes

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Malaysia

The Malaysian House of Representatives approved the Employees Provident Fund (Amendment) Bill 2025 on 6 March 2025, which requires mandatory Employees Provident Fund (EPF) contributions for foreign employees. Currently, contributions to the EPF are not mandatory for foreign employees but may be made voluntarily. The Bill sets the mandatory EPF contribution rate at 2% for both foreign employees and employers (4% total), which is lower than the contribution rates for local employees (11%) and employers (12%/13%). The Bill must now be approved by the Senate.