Talenox allows you to classify employees accurately based on their residency and contribution status. For non-Malaysian employees, this classification affects EPF (Employees’ Provident Fund) contributions and statutory compliance.
There are two similar options available in the employee profile:
Resident (Non-Malaysian)
Resident (Non-Malaysian) (Registered after August 1998)
This article explains the difference between these two classifications and how to select the correct one.
Why There Are Two “Resident (Non-Malaysian)” Options
The distinction comes from EPF membership rules that changed on 1 August 1998.
On this date, KWSP (Employees’ Provident Fund) introduced new regulations for non-Malaysian employees who joined EPF after that point.
Therefore:
Resident (Non-Malaysian) : for non-Malaysian employees who became EPF members before 1 August 1998.
Resident (Non-Malaysian) (Registered after August 1998) : for those who registered as EPF members on or after 1 August 1998.
This classification does not affect income tax residency status under LHDN (Inland Revenue Board). It only applies to EPF contribution rules.
Statutory Differences Between the Two Categories
The table below outlines the key EPF differences for these two groups:
Employee Category | EPF Membership Period | Contribution Treatment |
Resident (Non-Malaysian) | Registered before 1 August 1998 | Continues under the legacy EPF contribution rates (similar to Malaysians and permanent residents) |
Resident (Non-Malaysian) (Registered after August 1998) | Registered on/after 1 August 1998 | Subject to adjusted EPF contribution rules. From October 2025, EPF becomes mandatory for this group at 2% employer + 2% employee |
Important Notes
This classification is specific to EPF purposes only and does not affect tax residency under Malaysian income tax rules.
You can verify the employee’s EPF registration date directly in their EPF membership record or through the employee’s KWSP documentation.