KUCHING: The Labour Solidarity and Learning Resource Association (LLRC) has raised concerns over the Employees Provident Fund (EPF) contribution rate for foreign workers, calling the current 2 per cent rate inadequate.
According to its deputy president, Andrew Lo, the low rate might not be cost-effective in terms of collection, administration, and investment.
However, he acknowledged that the move was a good starting point, stressing that the contribution should be equal for both local and foreign workers.
“Employers will always complain about the cost impact. They should take a holistic approach and avoid discriminatory practices between local and foreign workers.
“Otherwise, we may run afoul of global labour standards and risk sanctions on our exports,” he said.
In light of this, Lo also pointed out that lower EPF rates would encourage employers to continue relying on foreign labour rather than investing in productivity enhancements and automation
