Release Note - version 2.8.0

Release Date: 17 October 2025

EPF Contribution For Non-Malaysian Citizen Employees

With effective from 1 October 2025, Malaysia government will enforce mandatory Employee Provident Fund (EPF) contributions for all non-Malaysian Citizen employees.

The purpose of mandating EPF contributions for non-Malaysian citizen employee is to foster greater equity and fairness within the labour market, regardless of nationality, in line with international social security standards.

Who needs to comply?

• Non-Malaysian citizen employees below age of 75 with valid employment passes are included. This includes both blue-collar and professional/expatriate roles.
• Exemptions: Domestic employees (domestic helpers, e.g., maids, cooks, cleaners) with valid permits are specifically excluded from the new policy. However, employer still can provide voluntary submission.

What are the contribution rates?

• The statutory contribution rate for non-Malaysian citizen employees who are not permanent residents in Malaysia is 2% for the employee's share and 2% for the employer's share.
• Existing non-Malaysian employee who contributes at 11% or more can choose to maintain the existing contribution rate. Alternative they can request to change the rate follow the new rules.

Financio Payroll system will be updated with the new changes in release version 2.8.0, as the employer, you can proceed to register the non-Malaysian Citizen Employee with KWSP if you have not do so, define the contribution rates and process the payroll follow the below steps.

Notes: The new company KWSP account for non-Malaysian employee is not mandatory if you already registered earlier. You may consult your KWSP business advisory for further details.  

Step 1: Company Setup > Statutory Information

A new field named “EPF No. (Foreign Employees Account)” has been added into company statutory information screen, allowing employers to input EPF account number for foreign employee contributions. 

Step 2: Employee Statutory Information Setup

In Employee Statutory Setup, a new checkbox labeled “Register EPF from 1 Aug 1998” is now available. This option should be selected for foreign employees who became EPF members after 1 August 1998.

Step 3: Monthly Salary Processing

Upon processing monthly salaries, the system will automatically compute EPF contributions for both employer and employee based on the latest rates issued by the EPF board.

Step 4: Form A Generation

In Form A generation, system supports generation of separate CSV upload files, categorized by EPF number, for streamlined submission.