Employers must now pay full RM10,000 foreign worker levy

Chan Kok Leong Chan Kok Leong Updated 7 years ago · Published on 25 Sep 2018 2:30PM · 3 Comments

Finance Minister Lim Guan Eng says employers must pay the full levy if they want their foreign workers to continue working in Malaysia after 10 years. – The Malaysian Insight pic, September 25, 2018.

Employers will now have to bear the full cost of the RM10,000 levy to extend the tenure of a foreign worker, the Finance Ministry said.

“The RM10,000 levy will be paid by employers if they want their foreign workers to continue working in Malaysia after 10 years,” Finance Minister Lim Guan Eng said today.

This reversal comes a day after he announced that employers and foreign workers should share the yearly levy at a 20:80 ratio, which meant foreign workers would pay RM8,000. 

Lim said the government had initially wanted to help employers with the 20:80 formula.

“But following the announcement yesterday, employers have complained in a local newspaper that the workers cannot afford the 80% share.

“As such, the employers will now have to bear the full cost if they want to extend the tenure of their skilled foreign workers,” said Lim at a press conference in Putrajaya.

The RM10,000 levy applies to those who have already worked for up to ten years in Malaysia and are seeking extensions using a temporary work permit, which must be renewed every year up to a cap of three years.

Foreign workers are required to return to their home countries after working here for 10 years.

The initial decision to make foreign workers pay 80% of the levy per year of extension was aimed at helping employers retain experienced workers.

The Malaysian Employers Federation yesterday slammed the move, saying it would result in more foreign workers coming here illegally.

Lim today said employers who did not want to bear the RM10,000 annual levy could send their workers back to their home countries and rehire them as new workers.

“They then only need to pay RM1,850 per year,” said Lim in Putrajaya. – September 25, 2018.

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Comments

  • lu manyak bodoh lar

    Posted 7 years ago by Chang kai chong · Reply

  • LGE don' be overly smart and curt in your response. Asking employers to send back every year at RM1850 cost not inclusve of air fares are just too damn arrogant. If the business community are not at all supported by the government friendly gestures and kind office you shall still be in difficulty to recover from the trillion debts. Know your place in society as well. There are pro and cons in the long staying foreign employees so please hear all sides and formulate a win win plan for both parties and also to the Government coffers.

    Posted 7 years ago by Lee Lee · Reply

  • Obviously capitalists are going to be pissed off with this. But how quickly people forget that just a few years ago we were complaining about locals not getting jobs because employers find foreign labour cheaper. Hopefully this move will incentivize local companies to hire locals.

    Posted 7 years ago by Aziff Azuddin · Reply