EPF and JIM tighten enforcement of mandatory EPF contributions for non-Malaysian workers

EPF and JIM tighten enforcement of mandatory EPF contributions for non-Malaysian workers

Summary

The Employees Provident Fund (EPF) and the Immigration Department of Malaysia (JIM) have formalised a closer collaboration to tighten enforcement of mandatory EPF contributions for non-Malaysian workers. Signed on 11 December 2025, the agreement increases system integration and data sharing to speed up registration, improve verification of work pass holders (including VPTE and Employment Passes) and bolster compliance under the EPF Act 1991. Since the October 2025 rollout, about 1.3 million workers have been enrolled via roughly 60,000 employers, but EPF warns that non-compliant employers face penalties and possible legal action.

Key Points

  • EPF and JIM signed a strategic collaboration note on 11 December 2025 to enforce mandatory EPF contributions for non-Malaysian workers.
  • The collaboration establishes closer system integration for secure data sharing on VPTE, Employment Pass and other valid work pass holders.
  • About 1.3 million non-Malaysian workers have been registered through approximately 60,000 employers since the policy began in October 2025.
  • EPF urges employers who have not implemented contributions to comply immediately to avoid penalties and legal action.
  • Employers must submit accurate worker details (full name, passport number, EPF membership number) and can check registration via the i-Akaun (Employer) portal; fingerprint registration starts January 2026.

Content summary

The partnership between EPF and JIM is designed to make enforcement more efficient by enabling both agencies to share and verify employment and pass data. The move follows Budget 2025 directives and the EPF Act 1991 requirements. Automatic registration applies to non-Malaysian workers holding VPTE and Employment Passes; other work pass categories continue to require standard EPF office registration procedures.

EPF highlighted initial uptake figures but stressed remaining non-compliance among some employers. To ensure contributions are credited correctly, employers must provide complete and accurate worker information and may register via EPF’s online portal or in person at branches. EPF also encourages non-Malaysian workers to complete fingerprint registration from January 2026.

Context and relevance

This change is a significant statutory update for employers operating in Malaysia or employing non-Malaysian staff there. It aligns with broader regional trends to extend social protection to migrant workers and to strengthen digital government checks through system integration. HR, payroll and compliance teams must update processes, payroll systems and onboarding checks to avoid penalties and ensure contributions are recorded correctly.

Why should I read this?

If you employ non-Malaysian staff in Malaysia, this is one you can’t ignore — it affects payroll, compliance and your risk of enforcement action. Quick: check your systems, verify that all eligible workers are registered, and fix any missing or incorrect passport/EPF details now. We’ve done the reading so you don’t have to panic later.

Source

Source: https://www.humanresourcesonline.net/epf-and-jim-tighten-enforcement-of-mandatory-epf-contributions-for-non-malaysian-workers