July 2025 Monthly Roundup

Your monthly guide to regulatory and workforce developments in Malaysia

EPF contributions for foreign workers begin October 2025

Beginning October 2025, EPF contributions will become mandatory for all non-Malaysian workers employed in Malaysia — except for domestic helpers with valid work permits issued by the Immigration Department (JIM).

Announced by EPF on June 25, the move is part of efforts to enhance social protection for foreign workers and align Malaysia’s employment practices with international standards.

The 2% contribution applies equally to both employers and employees and will be calculated based on October salary payments (for November 2025 contributions).

Employers should not wait until Q4 to react. It’s important to:

Update payroll systems and HR software
Revisit total labour cost calculations
Communicate changes to internal teams and finance departments
Stay audit-ready with accurate contribution records

This move reinforces the government’s push for better labour governance and companies that comply early will be best positioned for smooth transitions.

Source: Bernama

Stamp duty on employment contracts – are you compliant?

Starting 1 January 2025, the Inland Revenue Board of Malaysia (LHDN) will enforce a Stamp Duty Audit Framework that requires all employment contracts—whether for local or foreign workers—to be stamped within 30 days of signing. Learn:

who does this apply to
key requirements
penalties for late stamping
whether contracts from previous years are affected, and
what should employers do now

by reading the full article here.

ESG tax deduction for employers. What’s eligible in 2025–2027?

Malaysia is encouraging businesses to adopt more responsible practices — and backing it with tax support.

Under the newly gazetted Income Tax (Deduction for Expenditure in Relation to Environmental Preservation, Social and Governance) Rules 2025 (P.U. (A) 193/2025), eligible companies can now claim up to RM50,000 in annual tax deductions for approved ESG-related expenses.

This incentive is available from YA 2024 to YA 2027, giving employers a reason to align operational improvements with environmental and social goals.

Read more on what qualifies for the deduction.

New worker dormitory in Perai, Penang now inspection-ready

Osadi has completed a new 800-person dormitory in Taman Nagasari, Perai — built to support manufacturing and logistics clients across Batu Kawan, Bukit Minyak, and Kulim Hi-Tech Park.

Act 446-compliant
Strategically located
Fully managed, fully ready

View the facility.

Osadi wins Super Golden Bull Award 2025

Osadi is honoured to receive the Super Golden Bull Award 2025, recognising Malaysia’s most resilient and high-performing companies. Reserved for businesses with an annual turnover above RM100 million in at least one of the past three years, alongside a minimum of three years of profitability and full operations, this award highlights Osadi’s growth, operational excellence, and contribution to national economic progress.

More about the award.

Osadi: Your Partner in Workforce Management

At Osadi, we are committed to supporting our clients through these regulatory changes. We’re here to ensure your workforce remains efficient, compliant, and future-ready. Stay tuned for more updates, and don’t hesitate to reach out to our team for personalized assistance as we navigate 2025 together.

Prepared by Ken Wooi
Business Development Team
bdteam@osadi.com.my