EPF for Foreign Workers: Latest Requirements

Starting 1 October 2025, every employer must begin making EPF contributions for eligible non-malaysian citizen staff. This change aims to boost social protection and align local practice with global labor standards announced in the 2025 Budget Speech.

Employers need to update payroll systems and confirm registration details for affected employees who hold valid passports and work passes. The mandate excludes domestic helpers such as maids, cooks, gardeners, cleaners, babysitters, and drivers.

The policy sets a 2% contribution rate for the employer share to start. Employers must plan for new contributions, changes to salary reporting, and timely payment to avoid compliance issues.

Note: Small firms and HR teams should review employment records now so contributions begin smoothly in october 2025.

Key Takeaways

• Effective October 2025, employers must contribute for eligible non-malaysian citizen staff.
• The rule excludes domestic helpers like maids and drivers.
• A 2% employer contribution rate is the starting point.
• Employers need to update payroll and registration before the deadline.
• Timely payments protect employees and reduce compliance risk.

Understanding the New Mandatory Foreign Worker EPF Malaysia Policy

Starting in October 2025, the law requires employers to make formal contributions for qualifying non‑malaysian citizen employees.

On 6 March 2025 the Dewan Rakyat passed the Employees Provident Fund (Amendment) Bill 2025. The Prime Minister announced the move in the 2025 Budget Speech. The government settled a 2% contribution rate for the employer share and the employee share to begin the transition.

This change is designed to equalize terms between local and migrant staff and to lower undocumented employment. EPF CEO Encik Ahmad Zulqarnain Onn and Finance Minister II Datuk Seri Amir Hamzah Azizan have both highlighted compliance and registration as key outcomes.

Employers should review payroll, confirm member registration details, and plan for monthly contributions and timely payment. Early action reduces compliance risk and helps employees access benefits without delay.

• Law passed: 6 March 2025 formalised mandatory contributions.
• Starting rate: 2% for both employer and employee shares.
• Employer action: update payroll and confirm registration before october 2025.

Eligibility Criteria for Foreign Employees

Before payroll runs, employers should verify staff pass types and passport status to determine contribution liability.

Who qualifies? To be liable to contribute, an employee must hold a valid passport and a recognised pass. Eligible pass types include Employment Pass, Professional Visitor Pass, Student Pass, Residence Pass, and Long-term Social Visit Pass.

Employers must check each staff member’s status and keep clear records of pass type and employment dates. Accurate registration prevents missed epf contributions and avoids compliance risks.

Age and exemption notes

The scheme currently covers members under 60 years, though all eligible members should be registered. Domestic helpers — including maids, cooks, gardeners, babysitters and drivers — are explicitly excluded from mandatory contributions.

• To be liable contribute: valid passport + recognised pass.
• Covers Employment, Professional Visitor, Student, Residence and Long-term Social Visit passes.
• Maintain up-to-date records for smooth registration and monthly payment.

Contribution Rates and Financial Obligations

Payroll teams must now calculate a 2% employer share and a matching 2% employee share on monthly wages for qualifying non‑malaysian citizen staff.

This 2% employer contribution and 2% employee deduction applies to each eligible member’s salary. Employers should update payroll rules so amounts are computed correctly each month.

Note: Final figures must be rounded next to the nearest ringgit under standard procedures. Accurate rounding avoids shortfalls and reconciliation issues.

Follow the third schedule of the Act when submitting total contributions. Timely registration and payment protect members and reduce compliance risk.

Important Deadlines for Employer Payments

Make the 15th of the following month a fixed payroll milestone for all contribution months. This is the statutory cut-off for every monthly payment.

For the October 2025 contribution, the payment must be completed by 15 November 2025. Timely remittance protects members and avoids penalty charges that can grow quickly.

Practical tip: Track each non‑malaysian citizen employee by contribution month so you can reconcile employer and employee shares before the due date.

Avoiding Late Payment Penalties

Employers must ensure payments are successful by the 15th to prevent interest and fines. Missed or late submissions also complicate registration and member records under the third schedule.

Update payroll calendars, set automated reminders, and run an early payroll test the week before the due date. Doing this reduces errors when rounding to the nearest ringgit and keeps employer and employee records aligned.

• Deadline: 15th of the following month.
• Example: October 2025 → payment due 15 November 2025.
• Keep a per‑month register for each member to stay compliant.

How to Register Foreign Workers for EPF

Set aside time to register each qualifying employee on the portal—accurate input prevents later reconciliation headaches. The registration can be completed online via i‑Akaun (Employer) or at an EPF branch if help is needed.

Accessing the i‑Akaun Portal

Log in to i‑Akaun (Employer) with your employer credentials. Choose the “Register EPF Member” option to begin.

Member Registration Steps

1. Enter the member’s full name, passport number and recognised pass details carefully.
2. Add address, employment start date and salary information so contributions reflect wages correctly.
3. Preview the entry and correct any errors before submission to avoid later adjustments under the third schedule.
4. Submit the record so the system creates the member profile for future contributions.

Printing the Acknowledgement

After submission use “Print Preview” to save the registration acknowledgement. Keep this for payroll records and to show as proof of registration.

Example: if the online flow fails, visit an EPF branch to complete registration in person.

Note: Accurate registration helps employers calculate employer share and employee share each month and ensures members can access benefits without delay.

Managing Payroll Records and Compliance

Keep precise payroll logs so each staff member’s salary and contributions are easy to trace during audits.

Every employer must maintain detailed records that show salary, the 2% employer share, and the matching employee deduction for each non-malaysian citizen employee.

Accurate files should list the pass type, employment start date, contribution month and the exact wages used to calculate the contribution rate.

Good record-keeping reduces errors and speeds up reconciliation when authorities review accounts.

“Organized payroll records are the clearest proof of timely payment and correct member registration.”

Use clear folders, secure payroll software, and regular audits to ensure compliance with the third schedule. This protects members and helps employers avoid fines.

Withdrawal Conditions for Non-Malaysian Citizens

Leaving permanently or ending an employment contract makes a non-malaysian citizen eligible to withdraw accumulated savings. This rule covers cases where the employee’s pass expires or the employment relationship ends.

Authorized Withdrawal Scenarios

Authorized scenarios include permanent departure from the country, the end of employment, or expiry of the pass. Other valid reasons are the member’s death, physical or mental incapacity, and reaching age 55.

• A non-malaysian citizen may withdraw full savings when they leave permanently and do not plan to return.
• Withdrawals are also allowed on death, incapacity, or when a member reaches 55 years.
• Employers should advise employees that these funds are protected and accessible after employment ends.

Note: The contributions made by the employer and the employee are returned under these conditions. Clear communication keeps both employers and members confident about funds accumulated during employment.

Exemptions and Non-Eligible Workers

Employers should immediately flag roles that are not eligible to receive contributions under the new rules.

Domestic help categories are explicitly excluded. This includes maids, cooks, gardeners, cleaners, babysitters and drivers. Treat these roles as non‑eligible when you calculate contribution rates.

Anyone without a valid passport or recognised pass is also ineligible. If an employee lacks proper documentation, do not attempt to register contribute for them.

Practical steps:

• Audit headcount and mark exempt staff in payroll records.
• Only process epf contributions for staff who meet passport and pass requirements.
• Keep clear proof of status to avoid incorrect filings under the third schedule.

Clear distinction between eligible and non‑eligible staff helps employers maintain accurate salary and wages records. It also prevents penalties from incorrect contribution or registration entries.

Strategic Benefits of the New Ruling

By making contributions mandatory, the policy nudges employers towards more balanced recruitment choices. This helps equalize terms between local staff and non-malaysian citizen hires from october 2025.

Why it matters: employers face higher direct costs, but they gain a fairer labor market. The change reduces the cost edge of some hires and encourages firms to consider more Malaysians for open roles.

Macro benefits include reduced undocumented employment and fewer capital outflows. Channeling part of wages into savings supports the ringgit and long-term national goals.

• Equalises terms for non-malaysian citizen members and local staff.
• Limits undocumented work by tying contributions to registration and pass checks.
• Boosts savings through employer share and employee share, helping members access funds later.

“This move aligns fiscal policy with social protection and sustainable wage growth.”

Note: employers should update payroll, plan for the new contribution schedule, and keep accurate registration records to avoid payment issues.

Conclusion

Key action, businesses should prioritise accurate member setup and timely reporting now. Clear records ensure epf contributions are tracked, registration is complete, and payroll runs cleanly.

Employers must follow the 2% employer share and matching employee share, meet the 15th-of-month payment schedule, and keep salary and wages data ready. Do this to contribute epf on time, avoid fines, and support members who rely on these savings.

In short: update payroll, confirm registration, and settle payments to protect staff and maintain compliance. The change aims to make the labour market fairer while safeguarding long-term savings.