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 above RM1 million and up to RM5 million have been in scope since 1 January 2026. LHDN has extended the penalty-free interim relaxation for this group to 31 December 2027, but any single transaction above RM10,000 already needs its own e-Invoice. Businesses below RM1 million are exempt.

Question 4

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

Accepted Answer

Where monthly remuneration exceeds RM3,000, a principal contract stamped late attracts a penalty under the Stamp Act 1949, and an unstamped instrument cannot be admitted as evidence until the duty and penalty are paid. Contracts at RM3,000 a month or below are exempt and need no stamping.

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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