Starting from October 2025, EPF contributions will become mandatory for foreign employees working in Malaysia (excluding domestic workers).
What are the contribution rates?
The contribution rates will be 2% for both employee and employer contributions, with each contribution being rounded up to the next ringgit. Those rates will apply to all foreign employees, apart from non-Malaysian workers who are permanent residents or who became EPF members before 1 August 1998 (as they should continue to contribute at the same rates as Malaysian employees if aged under 60).
How to increase contribution rates if required?
Foreign employees who already registered voluntarily will not need to register again, but they should now contribute at the 2% rates for both employee and employer contributions instead of the 11% employee and RM5 employer contributions, if they registered after 1 August 1998. If they want to increase their employee contribution rate back to 11%, their employer should apply for EPF via their iAkaun portal to increase the contribution rate: How to increase EPF contribution rates.
How to register foreign employees who are not already EPF members
The EPF will facilitate and enhance the member registration process through automatic registration without requiring the employer to visit any EPF office. Further information will be updated on the EPF website.
PayrollPanda Settings
In PayrollPanda, all foreign employees' EPF settings will automatically be enabled with the 2% employee and employer rates, apart from permanent resident employees and members who registered before 1 August 1988 (as they will continue contributing at their previous rates).
You should add voluntary rates in the employee's profile if you have applied to EPF to increase the employee and/or employer rates: How to increase contribution rates.
To find more about EPF rates for Malaysian and foreign employees, please refer to: What are the contribution rates for EPF.