Mandatory EPF Contributions for Non-Malaysian Employees (Effective 1 October 2025)
With effect from 1 October 2025, EPF contributions became mandatory for all non-Malaysian employees working in Malaysia with a valid passport and employment pass issued by the Immigration Department of Malaysia, excluding domestic workers. This replaces the previous position where EPF participation for non-Malaysian employees was voluntary.
Contribution Rates
The statutory contribution rates for non-Malaysian employees are:
|
Contribution Type
|
Employer
|
Employee
|
|
EPF
|
2%
|
2%
|
Note: Contributions are calculated based on the employee’s monthly wages.
Employer Obligations
Employers are required to:
- Register all eligible non-Malaysian employees with EPF
- Deduct the employee’s share of contributions
- Remit both the employer’s and employee’s contributions to EPF by the 15th of the month following the wages month
Employees who previously made voluntary contributions at higher rates prior to 1 October 2025 may continue to contribute at a higher rate (above 2%) by submitting the appropriate EPF application. If the employee chooses not to continue at a higher rate, they will follow the statutory 2% contribution rate. In either case, the employer is required to contribute at least the statutory 2% rate for all non-Malaysian employees.
Further Clarification on Contribution
It was verbally confirmed by an EPF officer that:
- only salary payments made by an employer registered and operating in Malaysia are subject to EPF contributions, even if the company later seeks reimbursement from a foreign entity;
- salary payments made directly by a foreign entity are not subject to EPF contributions.
SOCSO Coverage for Non-Malaysian Employees
SOCSO coverage for non-Malaysian employees has been implemented in stages to align with Malaysia’s social security framework.
The Employment Injury Scheme has been applicable to non-Malaysian employees since 1 January 2019. With effect from 1 July 2024, SOCSO further extended coverage to include the Invalidity Scheme for non-Malaysian employees.
The change applies to non-Malaysian employees under the following conditions,
- Non-Malaysian employees who first register and contribute to SOCSO before the age of 55 are covered under the First Category, which provides protection under both the Employment Injury Scheme and the Invalidity Scheme.
- Those who are already aged 55 or above when they first enter the SOCSO scheme, or who continue working from age 60 onwards, fall under the Second Category, which provides protection only under the Employment Injury Scheme.
Contribution Rates
SOCSO contributions for all employees, including non-Malaysian employees, are based on applicable wage bands and the prescribed rate of contribution is stated in the table in accordance with the Employees’ Social Security Act 1969 (Act 4).
Employer Obligations
- Register all eligible non-Malaysian employees with SOCSO
- Deduct the employee’s share of contributions
- Remit both the employer’s and employee’s contributions to SOCSO by the 15th of the month following the wages month
