00:00The government has proposed to implement a mandatory 2% employees' Provident Fund contribution
00:07rate on foreign workers.
00:09Prime Minister Anwar Ibrahim said the rate is lower than the initial proposal of 12%,
00:14Burnama reported.
00:16He assuaged concerns that the rate might accumulate, saying that it would not be the case as the
00:21rate would be kept very minimal.
00:23He said the cabinet had considered feedback from various chambers of commerce before finalizing
00:28the decision.
00:30When tabling the 2025 budget last October, Anwar said the government planned to make
00:35EPF contributions mandatory for all foreign workers, with the plan to be implemented in
00:39phases.
00:40EPF has since said the move is expected to benefit 2 million foreign workers in the country,
00:46with mechanisms being put together to mandate foreign workers' contributions to the fund.
00:52Previously, foreign workers could voluntarily opt to contribute to the EPF at a rate of
00:57either 11% for those aged below 60 or 5.5% for the rest.
01:03Employers contribute only 5 Ringgit under both schemes.
01:08Danny Trajereza, FMT News.
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