THE government has proposed to implement a mandatory two per cent Employees Provident Fund (EPF) contribution rate on foreign workers, said Prime Minister Datuk Seri Anwar Ibrahim.
He said the rate was lower than the initial proposal of 12 per cent.
“But there were some concerns that it might accumulate, starting at two per cent, then increasing to four and six per cent. That is not the case. We are keeping it at 2 per cent, which is very minimal,” he said during the Associated Chinese Chambers of Commerce and Industry of Malaysia (ACCCIM) Chinese New Year reception.
He added that the Cabinet had considered suggestions from the commerce chambers.
"When things are better, maybe we will increase to 4%, but for now we keep it at 2%," he said.
He also clarified that the EPF contribution is not cumulative. - February 3, 2025
