Committee to study salary deduction plan for foreign workers

KUALA LUMPUR: The National Labour Advisory Council (NLAC) has formed a committee to study a proposal to deduct 20 per cent of foreign workers’ basic salaries and set it aside as savings.

Human Resources Minister M. Kulasegaran said yesterday the committee would report to the ministry on its findings on Jan 29.

“We discussed the proposal at length today (yesterday). The (aim of the proposal) is to ensure that there will be substantial savings for foreign workers (to collect before) they return to their countries.

“The committee will scrutinise the proposal and its mechanism. We are looking at the proposal holistically and hope that by Jan 29, we can update the (public on the) proposal,” he said after chairing an NLAC meeting at Parliament yesterday.

Kulasegaran said he mooted the proposal as it could benefit foreign workers.

“A lot of these workers (belong to the B40 income group) and below. It is crucial for us to ensure that when they leave Malaysia, they have something to take back home with them.

“This is my proposal. If (the committee decides against it), then it is a ‘no’, which is fine,” he said, adding that the committee was formed during the meeting yesterday.

Kulasegaran said 99 per cent of employers were good paymasters, while one per cent tended to delay salary payment, or not pay their foreign workers.

“This kind of ‘forced savings’ will serve as checks and balances. If the employer does not pay his employee, we can take action.”

On another development, Kulasegaran said 21,532 workers who lost their jobs between Jan 1 and Dec 7 had applied for the Employment Insurance System.