Malaysia's announcement to make EPF contributions mandatory for foreign workers has been met with a mixture of satisfaction and disappointment. While some workers are grateful for the inclusion in the social protection scheme, others feel the proposed 2% contribution rate is too low.
While some foreign workers in Johor Baru harbor hopes for a higher Employees Provident Fund ( EPF ) contribution rate, others express contentment simply being included in the social protection scheme. Himraj Thapa, a 31-year-old food factory worker from Nepal, acknowledged that the 2% rate set by the Malaysian government falls short of the 12% initially proposed by the Cabinet. 'I think changing the contribution rate to 2% is quite low.
I was hoping for a contribution rate of around 10%,' he shared. However, while acknowledging the government's decision, he stated, 'However, since that is the government’s decision, we have to respect it as we are just here to work and earn a living to feed our loved ones back home,' having worked in Johor for about 11 years.Another factory employee, Santosh Kumar Tharu, 33, from Nepal, expressed gratitude for Malaysia's efforts to protect the welfare of foreign workers. 'I have been working in Johor Baru for about six years and this is the first time I have heard about EPF for non-locals. 'It means foreign workers like me will be able to have some retirement savings for ourselves as we are presently sending most of our monthly salary back home,' he explained, noting his role in training new foreign hires at a production plant. Haryanti, a 43-year-old Indonesian, expressed cautious optimism, stating, 'If it happens, it is good news for foreign workers who have to travel far and leave their hometown to seek better job opportunities to feed their families.' She has worked in Malaysia for nearly a decade and, due to her age, fears being sent back to her hometown in Lombok before the new ruling takes effect.Prime Minister Datuk Seri Anwar Ibrahim recently announced that the mandatory EPF contribution for foreign workers will be capped at 2% following recommendations from commerce chambers. He confirmed that the Cabinet will further discuss the mandatory EPF contribution for foreign workers at its upcoming meeting, with the Human Resources Ministry poised to make an official announcement shortly. During the presentation of Budget 2025 last year, Anwar stated the government's intention to mandate EPF contributions for all non-citizen workers, with phased implementation. This proposal faced opposition from businesses who argued against subjecting foreign workers to such contributions
FOREIGN WORKERS EPF MALAYSIA CONTRIBUTON WELFARE
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