If you’re a Malaysian working alongside expats, foreign colleagues, or even hiring foreign workers, you might have noticed something new on payslips recently; non-Malaysian employees are now required to contribute to EPF too.
Since this is still a fairly new change, many people have been wondering: do foreign workers actually get EPF? And if they eventually leave Malaysia for good, what happens to all that money?
Here’s a simple breakdown.
Yes, foreign workers now contribute to EPF too
This wasn’t always the case. Before 2025, EPF contributions were only compulsory for Malaysian citizens and permanent residents, foreign workers were largely exempt unless they opted in voluntarily, with employers paying a flat token contribution of just RM5 a month.
That changed with a phased rollout of mandatory contributions for non-Malaysian employees, which took effect from the October 2025 wage cycle.
- Foreign employees holding valid work passes — Employment Passes, Professional Visitor Passes, Visitor’s Passes for foreign workers (excluding domestic helpers), Residence Passes, and a few other categories — are now required to contribute, mirroring the process used for Malaysian staff.
- The rates are currently lower than what locals pay: a 2% employee contribution matched by a 2% employer contribution, rather than the standard 11%/12-13% split for Malaysians.
Employers still need to register eligible foreign workers with EPF within 7 days of hiring, same as they would for local staff.
So can foreign domestic helpers (maids) get EPF too?
This one’s a bit of a grey area.
Domestic helpers fall under a separate category, and whether they’re covered under mandatory contributions can depend on specific circumstances, though employers are generally encouraged to register them voluntarily if they wish to.
Can foreign workers withdraw their EPF before leaving Malaysia?
Not fully, unless they meet the conditions for withdrawal.
A foreign worker cannot simply withdraw their entire EPF savings just because they have booked a flight home or plan to leave Malaysia soon.
For full withdrawal, they generally need to fall under the Leaving Country Withdrawal category. This applies to expatriates or foreign workers who are no longer employed in Malaysia or intend to leave the country, and who have savings with EPF.
That said, there is some flexibility under Akaun Fleksibel (Account 3).
KWSP says both Malaysians and non-Malaysians can withdraw from Akaun Fleksibel, as long as they are below 55 and have savings in that account. The minimum withdrawal amount is RM50.
For non-Malaysian citizen employees, Akaun Fleksibel withdrawals can also be made through the KWSP i-Akaun app or i-Akaun web portal, with a maximum limit of RM3,000 per withdrawal transaction, subject to terms and conditions.
What happens when they actually leave for good?
This is where the Leaving Country Withdrawal provision kicks in.
Once a foreign worker’s employment has genuinely ended; contract terminated, resignation processed, or work permit expired — they can apply to withdraw their entire EPF balance across all three accounts (Akaun Persaraan, Akaun Sejahtera, and Akaun Fleksibel), regardless of age.
They don’t need to prove they’ll never set foot in Malaysia again.
Eligibility is based on the employment relationship ending, not on future travel plans. Practically speaking, this means documents like a contract termination letter, a cancelled work permit, or tax clearance are usually what’s needed — not some kind of permanent-exile declaration.
Timing matters here too: expatriates are advised to apply about two months before their work permit expires, contract ends, or resignation date, to avoid delays.
What if they just move abroad but somehow keep their Malaysian job?
Doesn’t count.
If someone relocates to, say, Singapore or Thailand but is technically still employed under a Malaysian contract, that alone doesn’t trigger withdrawal eligibility — they need to have actually ceased employment and had their pass invalidated first.
Is the payout taxed?
In general, EPF withdrawals under the leaving country provision aren’t taxed in Malaysia.
That said, the destination country might treat it differently, so foreign workers heading home should check with a tax advisor there since some countries do require reporting or tax on foreign retirement savings received.
What if they come back to Malaysia to work again someday?
Once a Leaving Country Withdrawal is completed and the payout is credited, the EPF membership account is closed entirely.
If that person returns to work in Malaysia later whether as a returning expat or on a new work pass, they’ll need to register as a brand new EPF member from scratch. There’s no “reactivating” an old account.
A quick note on Malaysians who move overseas
Interestingly, the rules aren’t the same for citizens. Malaysians can only make a full EPF withdrawal under the leaving country provision if they formally renounce their citizenship.
Simply relocating overseas while keeping a Malaysian passport doesn’t qualify, even if the move is meant to be permanent.
Permanent residents sit in between — giving up PR status puts them through a broadly similar process to renouncing citizenship.
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