Foreign workers to pay levy instead of employers with immediate effect

With the introduction of minimum from RM600 - RM700 per month to RM900 monthly, the Cabinet has decided that foreign workers to pay levy instead of employers with immediate effect. Read The Star article below:


PUTRAJAYA: The Cabinet decided on Wednesday that foreign workers should pay the levy instead of employers.

The decision is to be enforced with immediate effect on new foreign workers and those who wish to renew their work pass, employment pass or temporary work visit pass.

The move is to alleviate the hiring cost for employers, said Finance Minister II Datuk Seri Ahmad Husni Hanadzlah.

“The minimum wage, which came into force this year has raised the salary for all workers on an average of between 30% and 50%, or from RM600- RM700 per month to RM900 monthly.

“The Government's move to impose a levy on foreign workers will not be a burden to them as the levy paid is between RM34.16 and RM154.16 per month as compared to a salary increase of between RM300 to RM500 per month,” Ahmad Husni said in a statement Wednesday.

The collection of levy for foreign workers was introduced in 1992 and was fully borne by the workers until 2009 when the Government decided to shift the levy burden to employers.

The 2009 decision was aimed at controlling the increase in the number of foreign workers in the country at that time.


MCA President, Dr Chua Soi Lek, is also pursuing the proposal to the Human Resources Ministry that foreign workers pay their own levy, transport and housing costs as a way of easing the burden on industries following the implementation of the minimum wage policy.