Budget 2025: Foreign workers are also obliged to contribute to the EPF!

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The Malaysian government is now determined to strengthen social protection and retirement savings with mandatory contributions to the EPF for all non-citizen workers.


The plan announced by Prime Minister Datuk Seri Anwar Ibrahim in Budget 2025, aims to ensure justice for all workers, regardless of nationality.


It will be implemented in stages according to international standards.


To encourage contract workers and those with irregular incomes to save, the i-Saraan matching incentive has been increased from 15% to 20%, with a maximum limit of RM500 per year and a lifetime limit of RM5,000.


This initiative is expected to greatly benefit more than 330,000 workers, giving them the opportunity to save more for retirement.


Not to be left out, housewives are also prioritized through the i-Suri program, where the matching incentive of 50% of the annual contribution will continue until 2025.


This measure aims to help this group save for their future with an annual contribution limit of RM300 and a lifetime limit of RM3,000.


In addition, the government also plans to transfer property between generations in the EPF, allowing retirement savings to be transferred to immediate family members.


This is part of the country's preparation to face an aging population, while ensuring the younger generation inherits financial security.


More than 2.3 million people, including two million foreign workers, are expected to benefit from this measure.


The EPF now plays a major role in ensuring the retirement well-being of all workers in Malaysia, while promoting fairness in the labor sector.


What do we expect next?


A more detailed full implementation will be announced in the near future by the EPF, making the financial future of Malaysians brighter and more secure!

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