Foreign labour levy to be fully borne by employers : Finance Minister

PUTRAJAYA: In a surprise move, Finance Minister Lim Guan Eng today said the foreign labour levy will fully borne by the employers instead of just 20% as announced yesterday.

The new measure takes effect from October 1.

Lambasting a local Chinese daily's report that the hefty levy will burden the foreign workers, Lim said the government decided to make such changes to the levy policy, which imposes RM10,000 levy on foreign workers who stay in Malaysia for over 10 years.

“Or else, the employers can send their workers back to home countries after 10 years, then apply to come back as a 'new' worker and pay RM1,850.”

Lim stressed that the foreign labour levy rate remains at RM1,850 for the first ten years and will only increase to RM10,000 beyond that.

Yesterday, he announced that foreign workers have to fork out 80% of the RM10,000 annual levy while the balance 20% be paid by employers.

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