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Tenaganita moots progressive EPF rate for migrant workers instead of 2pct
Tenaganita has proposed that the government implement a tiered Employees Provident Fund (EPF) contribution rate for migrant workers.
Its executive director Glorene A Das argued that this would provide better safeguards for migrant workers rather than the fixed two percent the government plans to implement.
Summary
Tenaganita proposes government implement a tiered EPF contribution rate for migrant workers.
Glorene A Das says this would provide better safeguards for the workers.
Tenaganita has proposed that the government implement a tiered Employees Provident Fund (EPF) contribution rate for migrant workers.
Its executive director Glorene A Das argued that this would provide better safeguards for migrant workers rather than the fixed two percent the government plans to implement.
“A tiered contribution system could provide a more equitable solution, where workers in lower-wage sectors contribute at a progressive rate, increasing gradually over their employment duration.
“This would ensure that migrant workers are able to build meaningful savings over time, rather than being subjected to an arbitrary and unsustainable two percent cap,” she said in a statement today.
On Feb 3, Prime Minister Anwar Ibrahim announced that the cabinet had agreed to set the migrant worker EPF contribution rate at two percent.
He had said that the original proposal was for the rate to be 12 percent.
Glorene said that while businesses are lauding the reduction, it is to the detriment of migrant workers who are already facing systemic discrimination.
“Migrant workers are already disadvantaged in wages, working conditions, and legal protections, and the reduction in EPF contributions further widens the inequality gap.
“It sends the message that, despite their critical role in industries like electronics, palm oil, and construction, they are not entitled to the same security as Malaysian workers,” she said.
The bill to make enrollment of migrant workers under EPF mandatory is expected to be tabled in the current Parliament sitting.
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