SUBSCRIBE: Newsletter

Human Resources

Toggle

Article

Malaysian employers’ levy for each foreign worker reduced to 20%



Human Resources Online is heading to Bangkok with the Accelerate HR conference on November 26-27.
HR leaders from Agoda, DKSH, Fonterra, FWD, Kasikornbank, Minor Food, Nissan Motor and more have already confirmed to speak.
Early-bird tickets are still available.

Employers in Malaysia will only have to pay 20% of the annual RM10,000 levy for each foreign worker who has been employed for more than 10 years, said finance minister Lim Guan Eng, during his keynote speech REHDA Institute CEO Series 2018 (Annual Property Developers Conference) on Monday (24 September).

The policy is only applicable for skilled foreign workers who opt for a permit extension of a maximum of three years, Lim said, as reported in The Edge Markets. As of now, employers pay the entire RM10,000 levy a year for each foreign worker, according to New Straits Times.

In December 2017, Malaysia Human Resources Ministry released a statement indicating the implementation of a new policy,where all employers must bear the cost of levy payments for new foreign workers as well as foreign workers who have renewed their Temporary Employment Visit Pass (PLKS).

“We have received complaints and we understand that this (levy) is quite a heavy burden, so we have tweaked it to a 80-20 share, (under) which 20% [is to be borne] by employers and 80% by foreign workers,” Lim said, as reported by The Edge Markets. The levy will enable the government to collect about RM1 billion in revenue for about three years, he added.

ALSO READ: Malaysians’ biggest worries include unemployment and foreign workers

Photo/ 123RF

Human Resources magazine and the HR Bulletin daily email newsletter:
Asia's only regional HR print and digital media brand.
Register for your FREE subscription now »

Read More News

Trending