(TAX UPDATE) EPF 2% for Foreign Workers … What Employers Must Know Before 1 October 2025

(TAX UPDATE) EPF 2% for Foreign Workers … What Employers Must Know Before 1 October 2025

If you’re running an SME in Malaysia, here’s something you cannot afford to miss: starting 1 October 2025, the Employees Provident Fund (EPF) requires employers to contribute 2% EPF for foreign workers (non-Malaysian employees).

This applies to all foreign employees with valid work permits, except domestic helpers.

The purpose? To ensure non-Malaysian workers also have a small retirement savings pool during their time in Malaysia.

Many employers still ask:
“Foreigners don’t get EPF, right?”
Wrong. From 1 October 2025, it’s mandatory.

When and How to Register

Employers are only required to register and contribute for their non-Malaysian employees starting 1 October 2025.

According to EPF official website, the processes are being streamlined to enable automatic registration, complete with notifications for employers once their workers are registered. Updates will be announced from time to time on official EPF channels.

Latest Development on Automatic Registration (Effective 20 September 2025)

Here’s the game-changer: from 20 September 2025, employers no longer need to manually register foreign workers.

Rumor spread around that EPF has “confirmed” the launch of automatic (direct) registration for non-Malaysian employees who hold:

  • Temporary Employment Visit Pass (PLKS), or

  • Employment Pass (EP),

provided their passport and work permit are valid.

This means:

  • No more manual submissions

  • Data syncs directly from Immigration Department to EPF

  • Employers receive a Notification of Automatic Registration once successful

You can also check foreign workers’ EPF numbers via i-Akaun (Employer) under “Register EPF Member.”

What Employers Should Do

  • Check permits
    Ensure PLKS or EP is valid. Expired permits will not be auto-registered.

  • Update records
    Keep passport and work pass details current for smooth data transfer.

  • Monitor i-Akaun (Employer)
    Log in regularly after 20 September 2025 to confirm registration status.

  • Keep contributing 2%
    Contribution is still mandatory—the only change is in how registration is handled.

Why It Matters for SMEs

  • Compliance risk

    Failure to contribute triggers penalties under the EPF Act.

  • Audit exposure

    Missing contributions will be flagged in EPF or tax audits.

  • Employee relations

    Many foreign workers are aware of their EPF rights. Non-compliance may lead to disputes.

At KTP, we always remind clients: a “small” 2% can snowball into big liabilities if ignored.

Final Takeaway

Between now and 20 September 2025, employers may still need to handle manual registrations. After that, EPF’s automatic system takes over.

For official updates, visithttps://www.kwsp.gov.my/en/employer/responsibilities/non-malaysian-citizen-employees

Stay alert. Stay compliant.

Past KTP Blog on 2% EPF on Foreign Workers

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