Employers to pay foreign workers levy, effective Jan 1

Strict measures will be taken against those who fail to comply with levy rules, says ministry

BEGINNING Jan 1, employers will be responsible for paying the levy for their foreign workers. The Human Resources Ministry yesterday said with the implementation of this policy, employers must bear the cost of levy payments for new foreign workers as well as foreign workers who renew their Temporary Employment Visit Pass (PLKS).

It said this also applied to employers who had forwarded levy payments before the policy came into effect, even if the PLKS period was active from this year and expired next year.

“The levy payment requirement is already stipulated in the Employers’ Undertaking document, which is signed by employers before they are permitted to hire foreign workers.

“Strict measures will be taken against employers who fail to comply with the law, regulations and policies on levy payment for foreign workers,” the ministry said.

It said the levy for foreign workers, issued by the Immigration Department in the peninsula for the manufacturing, construction and services sectors, were fixed at RM1,850, while the levy for the agriculture and farming sector was RM640.

The levy for a household’s first foreign maid is RM410, while for the second to fourth maids, the levy is RM590.

For Sabah and Sarawak, the levy for the manufacturing and construction sectors is RM1,010, services is RM1,490, farming is RM590 and agriculture is RM410.

For maids, the levy for the first one is RM410, while for the second to fourth ones, it is RM590.

The policy, which will be enforced under the Employer’s Mandatory Commitment, was approved on March 25 last year and was scheduled to come into effect on Jan 1 this year.

However, after discussions with employers’ organisations and taking into account business costs, the industry’s adjustment period and human resources management of companies involved, the government decided to postpone it to next year.

The ministry said this policy aimed to improve the foreign workers management system in Malaysia, which had been outlined in the 11th Malaysia Plan.

Other initiatives include limiting employment of foreign workers to 15 per cent of the country’s workforce by 2020, and regulating the entry of low-skilled foreign workers through the improvement of the foreign workers levy system.

Employers’ organisations involved include the Malaysian Employers Federation, Federation of Malaysian Manufacturers, National Chamber of Commerce and Industry of Malaysia, SME Association of Malaysia, Japanese Chamber of Trade and Industry Malaysia, Associated Chinese Chambers of Commerce and Industry of Malaysia, Malaysian Associated Indian Chambers of Commerce and Industry, Master Builders Association Malaysia and Malaysian Rubber Products Manufacturers Association.