Govt To Maintain Mandatory EPF Contribution At Two Percent For Foreign Workers - Sim

PUTRAJAYA, Feb 3 (Bernama) -- The government will maintain the proposed Employees Provident Fund (EPF) mandatory contribution rate for foreign workers at two per cent for employees and employers. 

Human Resources Minister Steven Sim said the rate would be maintained until further studies, taking into account the appropriateness of the current situation, to be held in the future.

He said further information on the implementation of the mandatory contributions would be detailed in the Cabinet meeting before a bill to amend the Employees Provident Fund (EPF) Act 1991 Is tabled in the Dewan Rakyat this time.

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Based on the calendar on Parliament's official website, the Dewan Rakyat sitting will last for 18 days, with MPs participating in the debate on the motion for seven days from Feb 4.

"This step is to increase fairness in the labour market by ensuring social protection for all workers, in line with international standards such as Article 68 of Convention 102 of the International Labour Organisation, which is the equal right to social protection for non-citizens," he said in a statement today.

Prime Minister Datuk Seri Anwar Ibrahim when tabling the Budget 2025, announced a proposal to make it mandatory for all non-Malaysian employees to contribute to the EPF to ensure fair treatment for all employees regardless of nationality.

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Following this, the Ministry of Finance (MoF) proposed that the EPF contribution rate be standardised for Malaysians and foreigners with new employment contracts.

This means that employees will contribute 11 percent while employers will contribute 12-13 percent.

-- BERNAMA