Guan Eng: Renewal levy fees for foreign workers in five sectors reduced from March

KUALA LUMPUR (Feb 23): The government is set to lower the extension levy fees in March for foreign workers who have worked in the country for more than 10 years, said Finance Minister Lim Guan Eng (pictured) today.

Lim said in a statement that the move by the Cabinet is meant to reduce the burden of employers.

He explained that the reduced levy will be in place for a year (March 1, 2019 to Feb 29, 2020) and will impact five sectors

For the manufacturing, services and construction sectors, the levy will be lowered from RM10,000 to RM6,000, while for the agriculture and plantation sectors, the levy will be lowered from RM3,500 to RM2,000.

There is no change in the levy fees for domestic workers.

“The government is concerned about the challenges faced by businesses and industries in a global situation that is facing uncertainties,” Lim said in the same statement.

In Budget 2019, Putrajaya allowed employers to extend the services of workers who have worked for more than a decade for another three years, although employers have to pay the fees.