Multi-tier levy system for foreign workers postponed to Jan 1, 2022 — HR minister

PUTRAJAYA (June 5): The implementation of the multi-tier levy system for the employment of foreign workers has been postponed to Jan 1, 2022, said Human Resources Minister Datuk Seri M Saravanan.

In a statement today, he said the decision was made in a Cabinet meeting last Wednesday (June 2).

Previously, the multi-tier levy system, which was scheduled to take effect on Jan 1, 2021, had been postponed to July 1, 2021.

“This decision takes into account the challenges posed by the Covid-19 pandemic which affect the health and economic sectors, and in turn gives a huge impact to various industries,” he said.

Saravanan said when the multi-tier levy system is to be implemented later, the employment of foreign workers will be based on the actual needs of the industry.

“It is expected to reduce the country’s high dependence on foreign workers because the levy rate will increase according to dependency ceiling,” he said.

Saravanan added the eQuota module under the Foreign Workers Centralised Management System (FWCMS) will be used to implement the levy system.

He said the module will ensure the transparency of the process of determining the foreign worker quota to employers, and will be used for the recruitment of new foreign workers from source countries.

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