Employers in Malaysia have paid Employees Provident Fund (EPF) contributions for 1,754,460 non-Malaysian workers since contributions became mandatory in October 2025, the Finance Ministry said. Its written parliamentary reply was published on Parliament's website on 22 October 2026.
The ministry was answering Jimmy Puah Wee Tse (PH-Tebrau). He asked what measures would ease the burden on SMEs, including whether the government would consider requiring foreign workers to bear the full cost of EPF contributions.
- 78,129 employers have contributed for non-Malaysian workers since October 2025.
- 86% of those employers, or 67,194, are small and medium enterprises (SMEs).
- The ministry called the 2% employer rate relatively low; the Bernama report mentions no change to it.
What this means for you
- Your employer pays 2% of your monthly wages into your EPF account, and 2% is deducted from your pay.
- At RM1,700 a month, that is RM34 from you and RM34 from your employer.
- Check your payslip with the take-home pay calculator, which has a foreign worker option.
- The Bernama report of the reply does not mention any change to the 2% rate or any plan to shift the full cost to workers.
- At RM1,700 a month, the employer share is RM408 a year for each foreign worker.
- The employer and employee rates for each type of worker are listed in the take-home pay calculator.
What the ministry said
The ministry said the rate takes into account the need to balance social protection for workers with the costs borne by employers.
- It said the government recognises that rising business costs weigh on employers, particularly SMEs.
- It said mandatory contributions are part of efforts to widen social protection to all workers in Malaysia, in line with international practice.
- It said the government remains open to proposals from all parties to improve policies, and will keep engaging SME associations and communities.
Who is paying
| Measure | Figure |
|---|---|
| Non-Malaysian workers with contributions | 1,754,460 |
| Employers contributing | 78,129 |
| Of which SMEs | 67,194 (86%) |
| Contributions mandatory since | October 2025 |
The ministry defined an SME as a business with no more than 200 employees in manufacturing, or no more than 75 in services and other sectors.
Your numbers
| Monthly wage | Foreign worker pays | Employer pays | Employer, a year | Employer pays for a citizen | Citizen pays |
|---|---|---|---|---|---|
| RM1,700 | RM34 | RM34 | RM408 | RM221 | RM187 |
| RM2,000 | RM40 | RM40 | RM480 | RM260 | RM220 |
Foundific calculations from the KWSP percentage rates for workers below 60. The EPF contribution table rounds totals up to the next ringgit.
RM1,700 is the current minimum wage. RM2,000 is the rate announced in Budget 2027 for June 2027; micro, small and medium enterprises with annual sales below RM50 million are exempted from it.
What we don't know yet
The report did not give the total amount contributed or a breakdown by industry or state. The written reply could not be downloaded from Parliament's website when this was written.
What to do next
- Work out a foreign worker's pay after EPF and income tax with the take-home pay calculator.
- Read what Budget 2027 proposed for the minimum wage in the RM2,000 minimum wage post.
- Compare two offers after deductions with the job offer comparison calculator.
- See median pay in each industry in salary by industry in Malaysia.
- The figures in this post will be checked against the written reply once Parliament's copy can be downloaded.
Related guides
Sources
Finance Ministry written parliamentary reply, 22 October 2026, as reported by Bernama
- Malay Mail (Bernama), MOF: 2pc EPF contribution rate for foreign workers relatively low 23 October 2026. The written reply was published on Parliament's website on 22 October; its text could not be downloaded when this was written.
- KWSP, Contribution for non-Malaysian citizen employees Employee and employer rates of 2% each.
