KUALA LUMPUR, February 7 — Prime Minister Datuk Seri Anwar Ibrahim today clarified that the mandatory Employees Provident Fund (EPF) contribution for foreign workers will remain at 2%, despite previous proposals suggesting a higher rate of 12%.
In his address at the Chinese New Year celebration with the Associated Chinese Chambers of Commerce and Industry of Malaysia (ACCIM), Anwar assured that the decision to keep the rate at 2% follows consultations and appeals, with no immediate plans to change unless deemed necessary by Human Resources Minister Steven Sim.
The EPF contribution for foreign workers was introduced as part of the 2025 Budget, aiming to enhance wage equity and ensure fair treatment of all workers. The government emphasized its commitment to closing the wage gap between local and foreign workers while adhering to international standards.
Anwar stressed that the 2% contribution is minimal for now, providing time for further evaluation of the policy’s impact on the labor market.
