Do You Know That 2% EPF Contribution Is Now Compulsory From Oct 2025

Do You Know That 2% EPF Contribution Is Now Compulsory From Oct 2025

New EPF Rule for Foreign Employees from Oct 25 onward– What You Need to Know

If you’re hiring foreign workers in Malaysia, starting 1 October 2025, all non-Malaysian employees (except domestic helpers) will have to be registered and contribute to the Employees Provident Fund (EPF) — just like Malaysian staff.

Before October 2025, contributing to EPF for foreign employees is voluntary. That means both the employer and employee can decide whether to contribute or not. Usually, if they choose to do so, the rate is 2% from the employee’s salary and another 2% paid by the employer. But it’s not compulsory — some companies do it, some don’t.

After 1 October 2025, things have changed. It will become mandatory for all companies to register and contribute EPF for their foreign employees who have a valid passport and work permit issued by the Malaysian Immigration Department. This means every employer must start deducting 2% from the employee’s wages and add another 2% from the company every month to EPF.

In simple terms — before October, the 2% from both sides is optional. After October, it becomes compulsory for all valid foreign workers under the new rule.

Employers will need to make sure all their foreign staff are properly registered and contributions are paid on time. Failure to comply could lead to penalties under the EPF Act 1991.

This change is meant to protect foreign employees and help them build some savings while they work in Malaysia. So if you’re an employer, it’s a good time to start getting your records, payroll system, and staff details ready for October 2025.

We can handle your payroll and compliance from A to Z.

How InTune Outsourcing Can Support SME Business Owners?

InTune Outsourcing is one of the Malaysia’s Most Advanced and Top Outsourced Accounting, Finance, HR and Payroll services providers.

We have served more than 400 clients todate and InTune offer full-range services from start up to small to medium-sized companies.

InTune takes away the stress and pains from managing Accounting, Finance, Payroll and HR, including Bookkeeping, Payment Services, Accounts Payable, Accounts Receivable, Payroll and more, by providing an expert team of CPAs and other accounting professionals who understand the special accounting needs of growing businesses.