Question 1

When did EPF contributions for foreign employees become mandatory?

Accepted Answer

EPF contributions for non-Malaysian citizen employees became mandatory starting from October 2025 salary or wages, with the first contribution payable by 15 November 2025. Employers with eligible foreign employees are expected to have registered and commenced contributions.

Question 2

Does the RM1,700 minimum wage include EPF, SOCSO, or allowances?

Accepted Answer

No. The RM1,700 refers to minimum wages payable to the employee. Statutory contributions such as EPF, SOCSO, and EIS are separate employer obligations and do not count toward meeting the minimum wage. Allowances, benefits in kind, or overtime should not be used to substitute the minimum wage requirement.

Question 3

My business exceeded RM1 million in revenue after 2022. When must I implement e-Invoicing?

Accepted Answer

Businesses with annual turnover or revenue exceeding RM1 million and up to RM5 million fall within the e-Invoicing implementation group effective 1 January 2026, with an interim relaxation period until 30 June 2026. If your business now falls within this range, you should prepare to comply from 1 January 2026.

Question 4

What happens if an employment contract is not stamped within 30 days?

Accepted Answer

Late stamping triggers stamp duty penalties based on the length of delay. While the contract can still be stamped later, an unstamped instrument may create evidentiary or enforceability complications until the duty and penalty are settled.

Question 5

Can foreign employees withdraw EPF if they change jobs within Malaysia?

Accepted Answer

Generally, no. Changing employment within Malaysia does not allow EPF withdrawal. Foreign members typically withdraw EPF savings under the Leaving Country Withdrawal when they are no longer employed in Malaysia and intend to return to their home country, subject to EPF procedures.

Question 6

Are part-time workers covered by the RM1,700 minimum wage?

Accepted Answer

Yes. Part-time and hourly-paid employees must be paid at least the minimum hourly wage of RM8.72, calculated proportionately based on hours worked.

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