Levy to be borne by foreign workers

On 30th January 2013, the Ministry of Finance announced that the levy for foreign workers shall be paid by the employees and not employers. This ruling shall take effect immediately. There is an official media release on this and it is accessible from the following link:

http://www.mohr.gov.my/docz/levi_foreignworkers.pdf

Employers are advised that in making deductions from an employees wages, s.24 of the EA must be referred to. The EA does not allow for such a deduction to be made from an employee’s wages therefore it is advisable for employers to write to the Director General of Labour (DGL) under s.24(7) to get his consent for such deductions. Under the newly implemented self-regulation system, the DGL will respond to you within three (3) working days with a set of guidelines to be complied with. You can proceed to make the deductions after complying with all the guidelines.