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EPF exemption for work pass expiring within 2 months

KWSP New EPF exemption rule. Work Pass expiry

Written by Chee Hian Chng

According to KWSP, "The mandatory contribution obligation will cease under any of the following circumstances:

…

iii. Two (2) months before the expiry of the work pass, if there is no extension. Two (2) months before the expiry of the extended work pass".
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In order to apply this in Talenox, you need to:

  1. Set Employee as follow:

    1. Malaysia Resident (Non-Malaysian)

    2. Malaysia Resident (Non-Malaysian after 1998)

    3. Knowledge Worker

    4. Malaysia Non_Resident and contributing to EPF

  2. Work permit expiry date is configured in profile
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  3. Payroll month is the expiry month or the month immediately before it

If a work permit expires on 2026-06-15:

  • ✅ May 2026 payroll: EPF exemption applies

  • ✅ June 2026 payroll: EPF exemption applies

  • ❌ April 2026 payroll: No exemption

The system will automatically exclude EPF calculation during payroll processing in the 2 months before expiry.

Source: KWSP Contribution For Non-Malaysian Citizen Employees

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