Malaysia: non-citizen employees have contributed 2% to the EPF since October 2025 wages
Since October 2025 wages, a foreign employee holding a valid passport and work pass must contribute to the Employees Provident Fund at 2% of wages, matched by the employer. Our calculator offers this case since 12 October 2026.
Effective date :
What changed
The Employees Provident Fund (EPF, Kumpulan Wang Simpanan Pekerja) has been mandatory for foreign employees since October 2025 wages. Every employee who does not hold Malaysian citizenship, has a valid passport and work pass and is under 75 must be registered by the employer, domestic workers excepted. The contribution is 2% of wages from the employee and 2% from the employer. The employer pays both shares to the fund and may deduct the employee’s share from pay.
Permanent residents are outside this rate: they stay on the citizen rates, 11% from the employee and 13% or 12% from the employer depending on wages. Embassies, high commissions, consulates and foreign governments are not employers under the EPF Act, unless the Minister designates them in a notice published in the Gazette.
This note also records a correction to our calculator. Its accuracy note said foreign nationals were “generally exempt” from the EPF, and the calculation applied 11% to every employee. Since 12 October 2026 the calculator offers the case “Non-Malaysian citizen employee (EPF 2%)”. The EPF share there is 2%; the 0.5% invalidity contribution and the 0.75% LINDUNG 24 Jam contribution apply as for citizens, according to PERKESO’s page on foreign workers; the Employment Insurance System (EIS), which PERKESO reserves for citizens and permanent or temporary residents, is not applied.
Effective date
The obligation covers October 2025 wages, which form the November 2025 contribution month. The first payment was due by 15 November 2025, and every month after that by the 15th of the month following the wage month. The 2% rate is the statutory rate at the date of this note; the fund states that it may be revised.
Worked example
Monthly employee deductions computed by our calculator for an employee under 60, in ringgit (RM), for a Malaysian citizen and for a non-citizen employee holding a work pass.
| Gross monthly wage | EPF, citizen (11%) | EPF, non-citizen (2%) | Total withheld, citizen | Total withheld, non-citizen |
|---|---|---|---|---|
| RM 3,000 | 330.00 | 60.00 | 373.50 | 97.50 |
| RM 5,000 | 550.00 | 100.00 | 622.50 | 162.50 |
| RM 6,000 | 660.00 | 120.00 | 747.00 | 195.00 |
| RM 10,000 | 1,100.00 | 200.00 | 1,187.00 | 275.00 |
The totals include the PERKESO contributions, computed on wages capped at RM 6,000 a month: 1.45% for the citizen (invalidity, EIS and LINDUNG 24 Jam) and 1.25% for the non-citizen (invalidity and LINDUNG 24 Jam). The gap between the two totals comes mostly from the EPF rate. The table shows contributions only: income tax is not part of it.
Sources
- Contribution For Non-Malaysian Citizen Employees, Effective October 2025 (read in its archived version of 25 February 2026, the live page refusing automated access)Kumpulan Wang Simpanan Pekerja (KWSP, Employees Provident Fund)·accessed
- Pekerja Asing: mandatory monthly contribution rates for foreign workersPertubuhan Keselamatan Sosial (PERKESO)·accessed
- Nota Penerangan Induksi Majikan Baharu, table of eligibility by schemePertubuhan Keselamatan Sosial (PERKESO)·accessed