Starting October 2025, Malaysia’s Employees Provident Fund (EPF) will automatically register non-Malaysian employees holding employment passes, requiring both employers and workers to make nominal monthly contributions.
From October 2025, non-Malaysian employees holding a Visitor’s Pass (Temporary Employment) or Employment Pass (which covers virtually all working expats) will be automatically registered as EPF members, removing much of the administrative burden for employers, announced the Employees Provident Fund (EPF).
Under the new directive, employers need not send workers to EPF offices to begin membership; they can verify registration status, update records, and handle thumbprint verification through i-Akaun (Employer). Employers have already been notified of the upcoming changes via letters distributed starting September 20, 2025.
In those notices, companies are asked to schedule appointments — via a URL link in the letter — for employees who could not be registered automatically, or to confirm details and thumbprint records for those already enrolled. Other pass holders will still need to visit EPF offices under the prior registration procedure.
Once successfully registered, employers may begin making contributions using the EPF member number assigned to each employee. To comply, employers must deduct and remit accurate monthly contributions no later than the 15th of the following month.
The new policy, effective October 1, 2025, also mandates that companies not yet registered with EPF must enrol and contribute for foreign staff. The required contribution rate is a modest 2% of wages from both employer and employee — far below the higher percentages for Malaysian citizens.
Employers must also maintain accurate payroll and personnel data — updates like address, company name changes, or termination of employment must be reported to EPF. The agency stressed that employees should apply for the Leaving Country Withdrawal two months before their work permit expires, and that supporting documentation must be verified and complete.
Key Aspects At a Glance
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Automatic registration
EPF will enrol eligible pass holders via integration with Immigration Department records. -
Lower contribution rates
Non-Malaysian staff contribute 2% of wages, matched by their employers. -
Exclusion of domestic workers
Domestic employees such as maids and drivers remain on a voluntary contribution basis. -
New coverage for all sectors
Every foreign staff in Malaysia, regardless of seniority or industry, is included under the reform.
According to local news reports, “This marks a significant shift from the existing voluntary system — currently, only about 0.9% of foreign workers (~22,635 of 2.5 million) are EPF contributors.”
Assuming the requirement to contribute will apply to all foreign workers, not just skilled workers holding employment passes, the reaction from some employers has been understandably negative, as reported by The Edge. It does seem that only domestic workers would not be covered under the new reform.
The move follows the passage of the EPF Amendment Bill in March 2025, which laid the legal groundwork for mandatory EPF contributions by foreign workers. According to EPF, any contributor, regardless of citizenship, will be eligible for dividends paid out by the fund.
Employers are now urged to update payroll systems, integrate EPF contribution logic for foreign employees, and ensure internal readiness before October — bearing in mind that this information was only relayed to employers beginning on September 20.
Taken together, officials say, these reforms aim to foster greater equity in Malaysia’s labour market, extend social protection coverage, and ensure that expats are not excluded from retirement savings mechanisms.
