MoF backtracks on foreign worker levy, says employers now to pay in full

KUALA LUMPUR (Sept 25): Just a day after announcing that employers would only have to pay 20% of the RM10,000 levy for each foreign worker, Finance Minister Lim Guan Eng today did an about-turn and said employers will have to continue to pay the levy in full.

He said the decision to revert back to the original policy was made after a local Chinese daily reported feedback from foreign workers, saying the new policy — which would require them to pay the remainder 80% or RM8,000 of the levy — will burden them.

The levy is applicable if employers want to extend the stay of their foreign workers beyond 10 years. According to previous reports, foreign workers who have been employed for 10 years can extend their stay for up to three years.

The levy, said Lim, will enable the government to collect about RM1 billion in revenue for about three years. — theedgemarkets.com

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