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Higher commission pushes up service charge for Malaysia-bound workers

Ram Chandra Giri Kuala Lumpur

Manpower agencies have said that the predeparture expenses for Malaysia-bound Nepali migrant workers have soared due to the higher commission they have to pay agents in Malaysia. They said that unhealthy competition raged among manpower agencies to secure jobs, and that the commission paid to agents who find work in Malaysian companies has doubled and, in some cases, even tripled.

A recent field study conducted by the Ministry of Labour and Employment (MoLE) found that migrant workers were paying huge amounts exceeding the maximum fee fixed by the government even if the visa and tickets were free. The government has set the maximum fee that manpower agencies can charge workers for arranging a job at Rs 80,000. Kumud Khanal, vice-president of the Nepal Foreign Employment Association (NFEA) who attended an interaction here on migrant workers, said that there has been intense competition among manpower agencies after the Malaysian government fixed the minimum monthly salary for Nepali workers at 900 ringgits. “The unhealthy competition started from the day that decision was made,” said Khanal at the interaction entitled Employment for Nepalis in Malaysia - Opportunity and Challenge. “Manpower companies are ready to pay high fees to agents arranging work.”

Last May, the Malaysian government had fixed the minimum monthly salary at 900 ringgits. However, the Nepali government has set the minimum pay at 546 ringgits. “The higher salary announced by the Malaysian government has allowed manpower companies to lure Nepali labourers and charge them a higher fee,” said an official at the Nepali Embassy in Kuala Lumpur. Speaking at the same programme, labour attaché Amal Kiran Dhakal said that the embassy was extending help to Nepali works stuck in various problems. “However, the government should make an effort to send workers at the minimum cost,” he added.

Nepali labourers seeking jobs are being squeezed by the unhealthy competition among manpower companies. They are forced to pay as much as Rs 160,000 for even a low-paying job in Malaysia. Those seeking jobs in electronics companies and as security guards have to pay more than Rs 200,000. Meanwhile, Khanal of the NFEA has justified the higher service charge saying that the minimum wage has gone up. “The minimum charge fixed by the government has not changed for the last 11 years,” he said. A recent study found that migrant workers were paying huge amounts exceeding the maximum fee fixed by the government even if the visa and tickets were free.

Published on: 7 August 2012 | The Kathmandu Post

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