Article 10 of the International Labour Organization’s Migrant Workers (Supplementary Provisions) Convention 1975 (No 143) states that member nations need to pursue a policy to guarantee the equality of treatment – regarding employment and social security – of migrant workers.
Malaysia, as a ILO member, has an obligation to pursue the core standards established by the ILO. And it rightly did so when it decided to extend protection, initially, under the Employees’ Social Security Act 1969 and, now, the Employees Provident Fund Act 1991 to migrant workers.
What was supposed to be contributions on par with the mandatory requirements under the EPF Act (11% for employees and 13% for employers) was diluted to a mere 2% – no thanks to the government succumbing to the employers’ demands.
The implementation of the 2% EPF contribution was expected to be enforced in the later part of this year – subject to the necessary amendments to the EPF Act. But this timeline seems to be under threat, yet again, as employers’ organisations, such as the Federation of Malaysian Manufacturers (FMM), are seeking a postponement of the implementation.
Citing rising costs, including an increase in electricity tariffs from July 2025, the FMM is seeking to defer the implementation of EPF contributions by a year.
Targeting the measly 2% EPF contribution but not agitating for the deferment or abolition of the hefty 14.2% increase in electricity tariffs makes no sense.
Obnoxious as it is, employers have often sought to either deny, oppose, delay or circumvent any progressive transformation of the workers’ social security safety net. Whether it is a revision of the national minimum wage, the implementation of the employees’ minimum standards of housing, accommodation and amenities, or even the 98-day maternity leave, the response has always been to equate such improvements to social security progression to cost increases.
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The fact is our nation still has a long, long way to go to improve workers’ socioeconomic wellbeing – by raising low or stagnant wages, reforming archaic labour laws and boosting old-age financial support.
The government must stand steadfast in its objective to transform the existing workers’ ecosystem.
If the government concedes to the employers’ demand every time it attempts to alter the status quo, it would inevitably result in workers been left to wallow in the vicious circle of low or stagnant wages and an unconducive working environment – just so that uncaring employers are permitted to stay in business.
It would be just and appropriate for the government to enforce EPF contributions for migrant workers, albeit at a low 2% rate, as soon as possible.
The ultimate goal must be that workers, regardless of whether they are Malaysians or migrants, must be accorded the same privileges, benefits and protection under our labour laws, lest we be accused of endorsing discriminatory labour practices. – Penang MTUC
K Veeriah is secretary of the Penang division of the Malaysian Trades Union Congress.
- Tegakkan maruah serta kualiti kehidupan rakyat
- Galakkan pembangunan saksama, lestari serta tangani krisis alam sekitar
- Raikan kerencaman dan keterangkuman
- Selamatkan demokrasi dan angkatkan keluhuran undang-undang
- Lawan rasuah dan kronisme
