See also:-Foreign workers will now have to pay levy as in 1992 - a great injustice for workers
In a statement, the finance ministry said the 1992 levy policy would be re-imposed on new foreign workers or when they renewed their work, study or visit permits.
"The move by the government in imposing the levy on foreign workers will not burden them as the levy rate is between RM34.16 and RM54.16, as compared to the hike in their wages of between RM300 to RM500 a month," it said.
According to the statement, since April 2009, the government had decided that the payment of foreign worker levy was fully borne by the employer to keep a check on the employment of too many foreign workers.
Nonetheless, since the RM900 minimum monthly wage policy in Peninsular Malaysia and RM800 in Sabah and Sarawak became effective on Jan 1, it has been getting brickbats from several parties.
Among them were the Malaysian Employers Federation and the Malaysian Trades Union Congress which claimed that foreign workers were now receiving better wages under the minimum wage policy, and should therefore, pay the levy themselves.
The collection of levy was introduced in 1992, to off-set the huge expenditure undertaken by the government for public amenities such as clinics, roads and other services enjoyed by both foreign workers and local residents.
-- BERNAMA, 30/1/2013, Foreign Workers To Bear Levy Payment With Immediate Effect
The decision is to be enforced with immediate effect on new foreign workers and those who wish to renew their work pass, employment pass or temporary work visit pass.
The move is to alleviate the hiring cost for employers, said Finance Minister II Datuk Seri Ahmad Husni Hanadzlah.
“The minimum wage, which came into force this year has raised the salary for all workers on an average of between 30% and 50%, or from RM600- RM700 per month to RM900 monthly.
“The Government's move to impose a levy on foreign workers will not be a burden to them as the levy paid is between RM34.16 and RM154.16 per month as compared to a salary increase of between RM300 to RM500 per month,” Ahmad Husni said in a statement Wednesday.
The collection of levy for foreign workers was introduced in 1992 and was fully borne by the workers until 2009 when the Government decided to shift the levy burden to employers.
The 2009 decision was aimed at controlling the increase in the number of foreign workers in the country at that time.- Star, 30/1/2013, Cabinet: Foreign workers to pay levy instead of employers with immediate effect