|
| 1 | +--- |
| 2 | +sidebar_position: 1 |
| 3 | +title: Foreign Worker |
| 4 | +description: Foreign worker EPF |
| 5 | +slug: /miscellaneous/epf/foreign-worker |
| 6 | +tags: ["SQL Payroll", "EPF"] |
| 7 | +--- |
| 8 | + |
| 9 | +## Overview |
| 10 | + |
| 11 | +Starting from **October 2025**, employers are required to ensure that all non-Malaysian citizen employees with valid work passes are registered and contribute to the EPF in accordance with Malaysian law. |
| 12 | + |
| 13 | +This guide will walk you through the setup process and requirements for EPF contributions for foreign workers. |
| 14 | + |
| 15 | + |
| 16 | + |
| 17 | +--- |
| 18 | + |
| 19 | +## EPF Settings in SQL Payroll |
| 20 | + |
| 21 | +Setting up the new EPF policy in SQL Payroll is straightforward. You need to ensure the correct settings are configured to comply with the new EPF rates for non-Malaysian citizen employees. |
| 22 | + |
| 23 | +There are **2 scenarios** for EPF contribution for foreign workers: |
| 24 | + |
| 25 | +1. **Non-Malaysian citizen employees without Permanent Residential Status** - 2% contribution rate |
| 26 | +2. **Non-Malaysian citizen employees with Permanent Residential Status** - Standard Malaysian rates |
| 27 | + |
| 28 | +:::tip How SQL Payroll Detects EPF Rates |
| 29 | +SQL Payroll automatically determines the appropriate EPF rates based on the employee's nationality, permanent resident status, and age. Refer to the chart below for details. |
| 30 | +::: |
| 31 | + |
| 32 | + |
| 33 | + |
| 34 | +### Non-Malaysian Citizen Employees Without Permanent Residential Status (2%) |
| 35 | + |
| 36 | +Non-Malaysian individuals who have been granted legal work rights in Malaysia but do not hold Permanent Resident status are required to contribute to EPF starting **October 2025**. |
| 37 | + |
| 38 | +**EPF contribution rates:** |
| 39 | + |
| 40 | +||< 60 years old| >= 60 years old and < 75 years old | |
| 41 | +|---|---|---| |
| 42 | +|EM| 2%| 2%| |
| 43 | +|EP| 2%| 2%| |
| 44 | + |
| 45 | +*\* EM – Employer Share, EP – Employee Share* |
| 46 | + |
| 47 | +#### Step 1: Configure Employee Profile (Non-PR) |
| 48 | + |
| 49 | +1. Navigate to **Human Resource** → **Maintain Employee** |
| 50 | +  |
| 51 | + |
| 52 | +2. Under **Grouping**, select the correct **Nationality** for the employee |
| 53 | +  |
| 54 | + |
| 55 | +3. Ensure the **PR Date** field is left **empty** (this indicates non-PR status) |
| 56 | +  |
| 57 | + |
| 58 | +4. Click **Save** to apply changes |
| 59 | +  |
| 60 | + |
| 61 | +#### Step 2: Contribution Setting (Non-PR) |
| 62 | + |
| 63 | +At this stage, you need to set the EPF contribution rate to “A”. |
| 64 | + |
| 65 | +1. Go to *Maintain Employee* → *Payroll Info*, check the current *Contribution* type of this employee, e.g. **FW** |
| 66 | +  |
| 67 | + |
| 68 | +2. Go to **Payroll** → **Maintenance** → **Maintain Contribution** |
| 69 | +  |
| 70 | + |
| 71 | +3. Select the contribution type from Step 1 (e.g., **FW**) |
| 72 | +  |
| 73 | + |
| 74 | +4. Click **Edit** and update both **Employee EPF Rate** and **Employer EPF Rate** from `0%` to `A` (Auto EPF Rate) |
| 75 | +  |
| 76 | + |
| 77 | + :::info Auto EPF Rate |
| 78 | + The "A" setting enables automatic EPF rate calculation based on employee status and effective dates. Hover over the ⓘ icon for more details. |
| 79 | + ::: |
| 80 | + |
| 81 | +5. Click **Save** to apply the changes |
| 82 | + |
| 83 | +  |
| 84 | + |
| 85 | +#### Step 3: Configure Wages Settings (Non-PR) |
| 86 | + |
| 87 | +1. Navigate to **Maintain Employee** → **Payroll Info** and note the **Wages type** (e.g., **FW**) |
| 88 | +  |
| 89 | + |
| 90 | +2. Go to **Payroll** → **Maintenance** → **Maintain Wages** |
| 91 | +  |
| 92 | + |
| 93 | +3. Select the wages type from Step 1 (e.g., **FW**) and click **Edit** |
| 94 | +  |
| 95 | + |
| 96 | +4. **Enable EPF contribution** by ticking the **EPF** checkbox to include wages in EPF calculations |
| 97 | +  |
| 98 | + |
| 99 | + :::info Other Contributions |
| 100 | + Other contributions such as SOCSO, PCB, EA, and OT settings are for reference purposes and can be configured as needed. |
| 101 | + ::: |
| 102 | + |
| 103 | +5. Click **Save** to apply the changes |
| 104 | +  |
| 105 | + |
| 106 | +#### Step 4: Verify Results (Non-PR) |
| 107 | + |
| 108 | +1. Navigate to **Payroll** → **New Payroll** |
| 109 | +  |
| 110 | + |
| 111 | +2. Select **Final**, choose **September (9)** and click **Process** to generate Month End, then repeat for **October (10)** |
| 112 | +  |
| 113 | + |
| 114 | +3. **Compare the results** between September and October 2025 to observe the EPF contribution rate changes: |
| 115 | + |
| 116 | + - **Before October 2025**: System automatically sets both Employee and Employer EPF rates to `0%` |
| 117 | +  |
| 118 | + |
| 119 | + - **October 2025 onwards**: System calculates both Employee and Employer EPF rates as `2%` |
| 120 | +  |
| 121 | + |
| 122 | +--- |
| 123 | + |
| 124 | +### Non-Malaysian Citizen Employees With Permanent Residential Status |
| 125 | + |
| 126 | +Non-Malaysian individuals who have been granted **Permanent Resident status** by the government are treated the same as Malaysian citizens for EPF purposes. |
| 127 | + |
| 128 | +**EPF contribution rates:** |
| 129 | + |
| 130 | +||< 60 years old| >= 60 years old and < 75 years old | |
| 131 | +|---|---|---| |
| 132 | +|EM| 13% or 12%| 6.5% or 6%| |
| 133 | +|EP| 11%| 5.5%| |
| 134 | + |
| 135 | +*\* EM – Employer Share, EP – Employee Share* |
| 136 | + |
| 137 | +#### Step 1: Configure Employee Profile with PR Status |
| 138 | + |
| 139 | +1. Navigate to **Human Resource** → **Maintain Employee** |
| 140 | +  |
| 141 | + |
| 142 | +2. Under **Grouping**, select the correct **Nationality** for the employee |
| 143 | +  |
| 144 | + |
| 145 | +3. **Enter the PR Start Date** to indicate Permanent Resident status |
| 146 | +  |
| 147 | + |
| 148 | +4. Click **Save** to apply the changes |
| 149 | +  |
| 150 | + |
| 151 | +#### Step 2: Contribution Setting (PR) |
| 152 | + |
| 153 | +At this stage, you need to set the EPF contribution rate to “A”. |
| 154 | + |
| 155 | +1. Go to *Maintain Employee* → *Payroll Info*, check the current *Contribution* type of this employee, e.g. **FW-PR** |
| 156 | +  |
| 157 | + |
| 158 | +2. Go to **Payroll** → **Maintenance** → **Maintain Contribution** |
| 159 | +  |
| 160 | + |
| 161 | +3. Select the contribution type from Step 1 (e.g., **FW-PR**) |
| 162 | +  |
| 163 | + |
| 164 | +4. Click **Edit** and update both **Employee EPF Rate** and **Employer EPF Rate** to `A` (Auto EPF Rate) |
| 165 | +  |
| 166 | + |
| 167 | + :::info Auto EPF Rate |
| 168 | + The "A" setting enables automatic EPF rate calculation based on employee status and effective dates. Hover over the ⓘ icon for more details. |
| 169 | + ::: |
| 170 | + |
| 171 | +5. Click **Save** to apply the changes |
| 172 | + |
| 173 | +#### Step 3: Configure Wages Settings (PR) |
| 174 | + |
| 175 | +1. Navigate to **Maintain Employee** → **Payroll Info** and note the **Wages type** (e.g., **FW**) |
| 176 | +  |
| 177 | + |
| 178 | +2. Go to **Payroll** → **Maintenance** → **Maintain Wages** |
| 179 | +  |
| 180 | + |
| 181 | +3. Select the wages type from Step 1 (e.g., **FW**) and click **Edit** |
| 182 | +  |
| 183 | + |
| 184 | +4. **Enable EPF contribution** by ticking the **EPF** checkbox to include wages in EPF calculations |
| 185 | +  |
| 186 | + |
| 187 | + :::info Other Contributions |
| 188 | + For PR employees, it's recommended to enable other contributions such as SOCSO, PCB, EA, and OT as shown, since they follow the same rules as Malaysian citizens. |
| 189 | + ::: |
| 190 | + |
| 191 | +5. Click **Save** to apply the changes |
| 192 | +  |
| 193 | + |
| 194 | +#### Step 4: Verify Results (PR) |
| 195 | + |
| 196 | +1. Navigate to **Payroll** → **New Payroll** |
| 197 | +  |
| 198 | + |
| 199 | +2. Select **Final**, choose **October (10)** and click **Process** to generate Month End |
| 200 | +  |
| 201 | + |
| 202 | +3. **Review the EPF calculation**: The system will calculate EPF rates for foreign workers with PR status at **Employee EPF rate 11%** and **Employer EPF rate 13%** (for employees with wages less than RM 5,000) |
| 203 | +  |
| 204 | + |
| 205 | +--- |
| 206 | + |
| 207 | +## Frequently Asked Questions (FAQ) |
| 208 | + |
| 209 | +1. What are the employer’s and employee’s share contribution rates for non-Malaysian citizen employees starting from the implementation date? |
| 210 | + - The contribution rates for non-Malaysian citizen employees starting from October 2025 are as follows: |
| 211 | +  |
| 212 | + |
| 213 | +2. What must the non-Malaysian citizen employees do to maintain the employee’s share contribution rate at 11%? |
| 214 | + - To maintain the employee's share contribution rate at 11% after the effective date of the new policy, employees must complete and submit the relevant form to their employer. |
| 215 | + - The employer must then submit an application to contribute above the statutory rate via i-Akaun (Employer). [Download the EPF application form](https://www.kwsp.gov.my/documents/20119/44359/Form_BORANG%20PERMOHONAN%20PENDAFTARAN_PEMBATALAN%20MENCARUM%20MELEBIHI%20KADAR%20BERKANUN_BM.pdf/d0da65c3-3fdd-2904-0ed1-a6fcc514b331?preview) |
| 216 | + |
| 217 | +3. For non-Malaysian citizen employees who have already opted to contribute to the EPF before the effective date of this new policy, do they need to re-register with the EPF? |
| 218 | + - No. Non-Malaysian citizen employees who are already registered and whose EPF member accounts remain active do not need to submit a new membership registration. Their existing member number will remain valid for all dealings with the EPF. |
| 219 | + |
| 220 | +4. Where can members verify their registration status? |
| 221 | + |
| 222 | + - Registration can be verified through the following channels: |
| 223 | + |
| 224 | + 1. **Verification by employers** via i-Akaun (Employer) |
| 225 | + 2. **Verification by members** at any EPF offices |
| 226 | + |
| 227 | +5. What types of work passes require EPF contribution? |
| 228 | + |
| 229 | + - Non-Malaysian citizen employees who are employed starting from **October 2025 salary** and hold any of the following work passes are required to contribute to EPF: |
| 230 | + |
| 231 | + 1. **Visitor's Pass** (Foreign Workers except Foreign Domestic Helpers) |
| 232 | + 2. **Employment Pass** |
| 233 | + 3. **Professional Visitor Pass** |
| 234 | + 4. **Student Pass** |
| 235 | + 5. **Residence Pass** |
| 236 | + 6. **Long-Term Social Visit Pass** |
| 237 | + |
| 238 | + :::note Important Notes |
| 239 | + |
| 240 | + - The obligation to contribute applies to non-Malaysian citizen employees who are employed and receive wages in the form of money starting from the October 2025 salary |
| 241 | + - Work permission for Professional Visitor Pass (Specialized), Student Pass, Residence Pass and Long-Term Social Visit Pass must be obtained in advance from the Immigration Department of Malaysia |
| 242 | + |
| 243 | + ::: |
| 244 | + |
| 245 | +6. Do employers need new registration for mixed workforce? |
| 246 | + |
| 247 | + - **No.** If an employer hires both Malaysian and non-Malaysian citizen employees, the employer is **NOT REQUIRED** to submit a new employer registration and may use the existing employer number. |
| 248 | + |
| 249 | +7. When can EPF contributions be stopped for foreign workers? |
| 250 | + |
| 251 | + - The obligation to contribute for non-Malaysian citizen employees **ceases during the final two (2) months** before the expiry of the employee's work pass, even if the employee is still in service. |
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