DEWAN NEGARA PASSES EMPLOYEES PROVIDENT FUND (AMENDMENT) BILL 2025

KUALA LUMPUR, March 24 (Bernama) -- Dewan Negara today passed the Employees Provident Fund (EPF) (Amendment) Bill 2025, which aims to provide provisions regarding the obligation to pay contributions and contribution rates applicable to foreign workers.

The bill was approved with a majority vote after being debated by 13 senators.

It involves amendments to 11 clauses, including Clause 2, which seeks to amend and replace the term ‘fund member’ with ‘employee’ in line with the changes introduced under Clause 3 of the bill.

Earlier, Finance Minister II Datuk Seri Amir Hamzah Azizan, when presenting the bill, said the amendments also aim to revise Clause 6, Subsection 70E of Act 452, including Subclause 6(a) to take away the option of voluntary contributions for foreign workers.

Also, Subclause 6(b) allows foreign workers to withdraw all or part of their credited savings once they reach the age of 55 under Section 55A of Act 452.

Amir Hamzah said the government's proposal to make EPF contributions mandatory for all non-Malaysian workers aligns with its commitment to ensuring fair treatment for all employees, regardless of nationality.

“To implement this proposal, it is necessary to amend the Employees Provident Fund Act 1991 (Act 452) through the Employees Provident Fund (Amendment) Bill 2025,” he said.

This move is also in line with the initiatives under Budget 2025, aimed at enhancing equal social protection for both Malaysian and non-Malaysian workers in the labour market, he added.

When winding up the debate on the bill, Amir Hamzah said making EPF contributions mandatory for non-Malaysian workers is expected to encourage employers to hire more local workers and strengthen salary structures, supporting Malaysia’s aspiration to become a high-income nation.

He also noted that the measure would help reduce undocumented foreign workers, as only legally registered employees under valid employers would be eligible to contribute to the EPF.

Amir Hamzah said as the 2025 ASEAN Chair, Malaysia must take proactive steps to enhance social protection for its foreign workers.

In this regard, he said the Finance Ministry and EPF will conduct a study on the ‘portability of social security benefits’ as part of ongoing efforts to allow foreign workers to transfer their EPF savings to retirement funds in their home countries.

The Dewan Negara sitting will resume tomorrow.

-- BERNAMA