Malaysian employers must pay foreign worker levy themselves

With effect from January 1 this year, Malaysian employers who wish to hire foreign workers will have to pay for the levies out of their own pockets. 

Employers who choose to recruit foreign workers will now have to pay for the hiring levy themselves, instead of deducting from the wages of the new overseas hires, Malaysian Home Minister Datuk Seri Ahmad Zahid Hamidi announced recently.

The new ruling came into effect on January 1.

Datuk Zahid told Malaysia’s The Star Online the aim of the ruling is to ensure employers understand and take full responsibility for the hiring of foreigners.

“The Government will also introduce the undertaking letter which will underline the responsibilities and requirements to be fulfilled by employers in the near future,” said the minister.

The undertaking period starts right from the application stage until the worker has returned home.