E-wage system, Socso contributions mulled for migrant workers


Human Resources Minister M. Saravanan says there have been many cases of employers not paying their foreign workers. – The Malaysian Insight file pic, July 9, 2020.

AN online wage system and Social Security Organisation (Socso) contributions are among the proposals being considered by the Human Resources Ministry for foreign workers post-pandemic.

Minister M. Saravanan said the e-wage system, to ensure migrant workers receive their salaries, is being studied and discussed with the Home Ministry.

“There are many cases where employers do not pay wages. We will introduce the e-wage system so that no worker is mistreated. If employers fail to pay their wages, we will get the information from the system. This will give assurance to foreign workers,” he told the press in Putrajaya today.

He said it has also been mooted for foreign workers to contribute to Socso.

The two proposals were discussed with representatives from the Bangladeshi high commission, who received them well, he said.

The talks also covered the enforcement of Act 446 come September 1 to ensure employers provide accommodation for and look after the welfare of migrant workers, with a fine of up to RM50,000 for non-compliance.

In the near term, said Saravanan, no migrant workers will be allowed into the country except for those in certain sectors such as mining, until Malaysia’s foreign workforce has been streamlined.

He said foreigners with work permits in the country, too, could lose their jobs due to the economic downturn triggered by the Covid-19 crisis. – Bernama, July 9, 2020.


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