Malaysia's Revised Schedule of Levy for Foreign Workers

May 25, 2016POEA MARKET UPDATE NO. 007-16MALAYSIA'S REVISED SCHEDULE OF LEVY FOR FOREIGN WORKERSThe Department of Foreign Affairs has reported on the decision by the Malaysian government to revise the schedule of levy for foreign workers after a two-month freeze in its implementation and at the same time conducting a series of consultations with stakeholders. The levy is the fee paid by the foreign workers upon processing and yearly renewal of their work visas. According to the Home Ministry of Malaysia, the decision was reached after the rates proposed earlier by the government met resistance from employers who complained that the increase in levy was too high and could affect businesses, particularly those that are dependent on foreign labor. Below are the revised new levy rates for foreign workers which took effect in peninsular Malaysia last 18 March 2016: Old RatesProposed RatesFinal Approved RatesDifferenceManufacturingRM1,250RM2,500RM1,850RM600ConstructionRM1,250RM2,500RM1,850RM600PlantationRM590RM1,500RM640RM50AgricultureRM410RM1,500RM640RM230ServiceRM1,850RM2,500RM1,850UnchangedThe increase in the foreign worker's levy will cover more than two million workers in various sectors across all states in Malaysia which will impose similar rate of increase. Foreign domestic workers...