Malaysia has decided to make it mandatory for employers to pay levy on behalf of migrant workers from 2018 onwards.

 

The new policy will benefit nearly 1.8 million foreign workers in the country including Nepalis. According to Malaysia’s Immigration Department, Nepali workers account for Malaysia’s second largest labour force, with 485,000 Nepalis currently working there. 

 

A total of 98,437 Nepalis joined Malaysia’s growing labour force in the fiscal year 2016-17 alone. Mohan Adhikari, spokesperson for Nepal’s Department of Foreign Employment (DoFE), says the decision of the Malaysian government to make employing companies pay the levy for foreign workers is a welcome step. “This will help migrant workers the most as they can save their hard-earned money,” he said.  

 

The Malaysian Human Resources Ministry on Wednesday said that it will start collecting levy from the employers hiring foreign labourers starting next year. “Through this policy, employers all over Malaysia must bear the levy fees for new foreign workers and also foreign workers who have temporary work permits,” read the ministry’s statement. “This policy also applies to employers who have already forwarded their levy payments before the policy comes into force, even if the Temporary Employment Visit Pass (PLKS) period is still active from this year and expires in 2018.” 

 

The plan of Malaysian government to introduce the same foreign workers’ levy policy last year had been scuttled after a protest from the employers’ union. The Malaysian authorities have said that they were working towards effective implementation of the new policy. They said strict action will be taken against employers who fail to comply with the law, regulations and policies with regard to the levy payment of foreign workers.

 

The levy amount charged from foreign workers differs in Peninsular Malaysia depending on the sectors. According to the Immigration Department, migrant workers employed in manufacturing, construction and services sectors should pay RM1,850 while those in plantation and agriculture sector should pay RM640. For foreign maids, the levy ranges from RM from RM410 to RM590 per annum.