KUALA LUMPUR, Jan 3 — Prime Minister Datuk Seri Anwar Ibrahim has assured that the mandatory Employees Provident Fund (EPF) contribution on foreign workers will remain at 2 per cent.
He was while there were proposals for 12 per cent, the Cabinet has decided to go with 2 per cent.
“The foreign workers EPF contribution must be done. But there was some confusion that it will be cumulative.
“So we kept it at 2 per cent, which is very minimal, the initial proposal was 12 per cent, the Cabinet did consider the appeal by the Chambers… and we will stay at this for some time until things are much better.
“There’s no worry about having it cumulative unless Steven Sim (human resources minister) feels strongly to increase, otherwise we will keep it at this rate first,” said Anwar in his address at the Chinese New Year celebration with Associated Chinese Chambers of Commerce and Industry of Malaysia (ACCIM) here today.
The mandatory EPF contribution on foreign workers was announced by the prime minister during the tabling of the 2025 Budget last October.
Anwar reportedly said that the move is in line with the government’s commitment to providing fair treatment to all workers regardless of their nationality as per international standards.
Finance Minister II Datuk Seri Amir Hamzah Azizan had also reportedly said that the policy was aimed at improving wage equity and ensuring the local workers are not disadvantaged as the government aimed to close the wage gap between local and foreign workers.
