📆 Starting October 1, 2025, Malaysia has introduced a significant change to its Employee Provident Fund (EPF) regulations. Non-resident employees working in Malaysia will now be required to contribute 2% of their monthly salary to the EPF.
Understanding the New Regulation
The 2% EPF contribution requirement applies specifically to non-resident employees working in Malaysia. This mandatory contribution represents the government's effort to enhance retirement savings for foreign workers while ensuring consistency in the social security framework.
Key Details:
Effective Date: October 1, 2025
Contribution Rate: 2% of monthly salary
Applicable To: Non-resident employees only
Employer and Employee Contribution: 2%
Employers must pay contributions for a particular month's wages on or before the 15th of the following month.
Example: Salary for November 2025
Therefore, the Contribution Month is December 2025 and it has to be paid either before or on 15 December 2025.
The employer needs to pay both the employees’ and the employer’s share to the EPF. Employers may deduct the employee’s share from their salary. EPF Contributions must be paid in only ringgit denominations and without any cent value.
What You Need to Do on Talenox
To ensure compliance with the new regulation, all you need to do is to update the "Is contributing EPF" field to Yes and select Statutory Default
You will be able to see in Month Total > Statutory Summary that the EPF Employer and Employee rate is updated to 2% starting October 2025 onwards.
That's all you need to do to stay compliant to the latest regulation 👍
Source: https://www.kwsp.gov.my/en/employer/responsibilities/non-malaysian-citizen-employees