New Policy: Foreign Workers’ EPF Contribution Now Capped at 2%

Prime Minister Datuk Seri Anwar Ibrahim announced that the Employees Provident Fund (EPF) contribution for foreign workers will be capped at 2%, down from the initial 12% proposal after discussions with business chambers.Speaking at the ACCCIM Chinese New Year Reception 2025 on Monday (Feb 3), Anwar clarified that the contribution is not cumulative and may increase to 4% when conditions improve.Earlier, ACCCIM president Datuk Ng Yih Pyng urged the government to reconsider mandatory EPF contributions for non-PR foreign workers, warning that it could burden employers already struggling with rising costs in a challenging business environment.

Kindly subscribe to our newsletter for extensive news and information, and enjoy lifetime free business advisory. Schedule an appointment with our consultant today.