PETALING JAYA: Family Frontiers has urged the government to reconsider the 2% Employees Provident Fund contribution cap, citing financial security concerns for non-citizen employees.
In a statement today, the NGO said the newly mandated 2% EPF contribution is significantly lower than the 12-13% for Malaysian employees.
“Social protection is fundamental in ensuring equitable retirement security for all workers, regardless of nationality, and is essential to fostering a fair and just society,” it said.
Family Frontiers said highly qualified non-citizen employees already face difficulties such as being unable to work in licensed professions without permanent residency and employers being deterred by the long-term social visit passes (LTSVP) held by foreign spouses.
It said a 2021 survey of these spouses indicated more than 70% of them held bachelor’s degrees or higher qualifications. It revealed that 77.2% of respondents had difficulty finding employment.
“Nearly 34.2% of the respondents indicated companies were very unwilling to hire them after seeing the clause on prohibition from employment,” it said.
Previously, Family Frontiers had urged the home ministry to eliminate a clause in the LTSVP which prohibits a foreign spouse from seeking employment, saying they ought to be entitled to work immediately upon the registration of their marriage to a Malaysian citizen.
LTSVP holders are only allowed to work, without converting their visas into employment or professional visit passes, by obtaining work permit endorsements from the immigration department.
Family Frontiers also said non-citizen spouses with employment also lack the fundamental right to name family members as beneficiaries for their EPF savings, while widowed or divorced non-citizen spouses cannot work due to visa restrictions.
Recently, the government proposed a mandatory 2% EPF contribution rate on foreign workers, lower than the initial proposal of 12%.
The plan to implement mandatory EPF contributions for foreign workers was first announced during the tabling of the 2025 budget last October.
