Page 8 - Malaysia MADANI Wellbeing Initiative Series 1/2025 - Bill

Employees’ Provident Fund (EPF)

(Amendment) Bill 2025

House of
Representatives Senate Date of Effective
Date of Approval Approval Date / Status
6 March 2025 24 March 2025 Not yet announced

The Employees’ Provident Fund (Amendment) Bill 2025 was passed to
strengthen social protection for non-citizen workers in Malaysia. This
amendment makes EPF contributions mandatory for foreign workers,
with a contribution rate of two per cent by the employer and two per
cent by the employee, as opposed to the previous voluntary arrangement.
This measure aims to ensure fairness within the social protection system,
encourage the employment of local workers, and reduce the exploitation
of foreign workers.
In addition, non-citizen workers are permitted to withdraw their EPF savings
upon reaching the age of 55 years or upon the expiry of their work permit.

8 | MALAYSIA MADANI WELLBEING INITIATIVE 2025