FM clarifies levy charges on foreign workers

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FINANCE Minister Lim Guan Eng clarified the decision on the levy imposed on skilled foreign workers which was recently announced by the Cabinet to be implemented on Oct 1.

 

“Some people thought that we (the federal government) increased the levy to RM10,000. No, the amount remains the same. It’s still RM1,850 for those foreign workers working here from the first to the tenth year. It’s only the 3-year extension after the tenth year that there will be charges of RM10,000,” he said.

 

“For those who choose not to pay, there are still other options. They can send the foreign workers back to their home country and if the workers return here, then just pay the annual levy RM1,850. This is a new relaxed condition by the federal government that’s being done for the first time. Employers can now extend their workers’ stay here for another 3 years making it a total of 13 years.

 

“Originally, we wanted to help the local employers by having the foreign worker pay 80% of the levy and the employer pay (the remaining) 20%. But when we made the announcement, some of the employers were also affected. So, as the government which listens to the people, we reverted to the original announcement of RM10,000 to be paid by employers,” the finance minister said on Sept 27.

 

Lim also added that the new ruling involving the RM10,000 levy does not apply on foreign domestic helpers.

 

Story by Victor Seow

Pix by Ahmad Adil Muhamad