PSM slams Kok over ‘discriminatory’ EPF contribution proposal

PSM slams Kok over ‘discriminatory’ EPF contribution proposal

PETALING JAYA: Parti Sosialis Malaysia (PSM) has criticised Seputeh MP Teresa Kok’s proposal suggesting the government set employer EPF contributions for foreign workers at 1.5% while requiring the workers to contribute 10% of their income.

PSM deputy chairman S Arutchelvan pointed out that currently, the employers’ contribution rate is at 13% while local employees contribute 10% of their basic pay.

“Why must (foreign) workers’ pay more than their bosses? This kind of discriminatory policies against migrants are typical of politicians playing to the xenophobic nature of our society,” he said in a statement.

Arutchelvan added that many companies lobby strongly that they need foreign workers because Malaysians do not want to take up certain jobs.

“PSM strongly believes that the migrant workers here do the most dangerous, difficult and dirty (3D) jobs which many locals don’t want to do.

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“So, it is morally and justly correct that they should be paid a decent wage and giving them EPF will do justice to their labour,” he said.

Arutchelvan emphasised that big companies must be prepared to pay for the recent proposals announced in the 2025 budget.

“When the government has decided to increase the minimum wage and made it mandatory to pay EPF, these big companies must be prepared to pay for it.

“They should get the message that foreign labour is not cheap labour, and if they insist on it (hiring foreign workers), then they must be equally willing to pay for it,” he said.

According to Arutchelvan, similar schemes are done in many other countries in the world and Malaysia is just being consistent with the global practise.

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“Similarly, we wouldn’t want our citizens who are employed overseas to be discriminated against. That is why the comment by Kok is not only in bad taste, it will allow for further exploitation of migrant workers.

“Kok’s idea in making it less costly for migrants means it will be further inducement for employers to employ migrant labour than local workers,” he added.

The government’s proposal on mandatory EPF contributions for foreign workers was recently criticised by several quarters, including the Federation of Malaysian Manufacturers (FMM) and the Master Builders Association Malaysia.

FMM was reported to have said that industry players were not consulted on the proposal.

The two groups had urged the government to delay the initiative.