78,129 employers contribute to EPF for foreign workers
The Finance Ministry described the 2% employer contribution rate as relatively low, balancing worker protection against business costs.
Employers numbering 78,129 have made Employees Provident Fund (EPF) contributions covering 1,754,460 non-Malaysian workers since the requirement became mandatory in October 2025, according to the Finance Ministry (MOF).
In a written parliamentary reply, the ministry described the 2% rate payable by employers as relatively low. It said the rate balances social protection for workers against employer costs, while acknowledging cost pressures facing small and medium enterprises (SMEs).
The reply addressed a question by Jimmy Puah Wee Tse (Pakatan Harapan-Tebrau) about relief for SMEs, including whether foreign workers could be required to pay the entire EPF contribution themselves.
SMEs accounted for 86%, or 67,194, of the contributing employers, MOF said. Its definition covers manufacturing businesses employing at most 200 people and businesses in services and other sectors employing at most 75.
The ministry viewed those figures as evidence of growing employer acceptance and implementation of the requirement, including among SMEs. It said mandatory contributions support broader social protection for workers in Malaysia.
MOF said it remained open to policy improvements and would monitor the measures’ effectiveness while engaging SME associations and communities to help assistance reach businesses needing support.
