MEF calls for clearer EPF guidelines and practical enforcement as domestic workers remain excluded despite amendments to the EPF Act.
PETALING JAYA: The Malaysian Employers Federation (MEF) has urged clearer guidelines, stronger public awareness and a practical approach to enforcement after domestic workers were left outside mandatory Employees Provident Fund (EPF) contributions, despite amendments to the EPF Act 1991.
MEF president Datuk Dr Syed Hussain Syed Husman acknowledged the government’s efforts to protect domestic workers, including EPF policies, but stressed that effective implementation is essential, citing uneven awareness among household employers and the public.
In March 2025, the EPF Act was amended to require contributions of 2% from employers and non-Malaysian employees for wages from October 2025, with the first payment due on Nov 15. However, domestic workers – both local and foreign – remain excluded.
“As it stands, domestic employees are not covered by the mandatory contribution requirement under the amended Act. Their employment in private households continues to be treated differently from commercial employer-employee relationships.”
Under current law, household employers are not obliged to contribute to EPF, while domestic workers may join voluntarily. They are generally not considered “employees” under the EPF Act unless employed by a registered business or specified employers listed in the Second Schedule and must formally notify the EPF Board to become members.
Syed Hussain warned that many households may not fully understand the provisions, facing challenges including registration procedures, administrative systems designed for corporate employers and language or digital literacy barriers – particularly among elderly employers.
While Human Resources Minister Datuk Seri R. Ramanan has said existing labour law amendments could protect domestic workers if enforced effectively, MEF stressed that domestic work is a unique employment relationship that requires tailored regulation.
Syed Hussain urged the government to moderate the pace of regulatory changes affecting employers, warning that the simultaneous introduction of multiple amendments has placed significant pressure on households and businesses alike.
“While MEF is not opposed to reform, changes must be structured, phased and well-planned, with adequate consultation and transition periods,” Syed Hussain said.
“Regulatory stability is crucial for employers to plan with confidence and focus on long-term sustainability.”
He emphasised that the key issue is not whether protections fall within existing laws or a standalone act, but whether rights and obligations are clear, enforcement is appropriate for household settings, and overlapping legal requirements do not create confusion.
MEF urged simplified guidelines for household employers, user-friendly EPF processes, multilingual outreach programmes and better coordination between the EPF, Labour Department and immigration authorities.
“Strengthening protection for domestic workers is vital, but laws alone are insufficient without effective communication, practical implementation and supportive enforcement,” Syed Hussain said.
“A balanced approach that safeguards workers while enabling household employers to realistically understand and fulfil their obligations is critical to the success of government policy.”
On Dec 23, Ramanan said a new bill to protect foreign domestic workers was unnecessary. He added that amendments to the EPF Act could formally recognise them as employees and provide mandatory protection, with additional safeguards through memoranda of understanding and the Lindung Worker scheme.
