The rationale behind getting employers to bear the levy was to discourage them from employing foreigners.... - Bernama, - Star, 16/4/2009
In a statement, Second Finance Minister Ahmad Husni Hanadzlah (left) said that the imposition of levy on foreign workers was first introduced in 1992, where it was imposed to finance public amenity-related projects like the construction of clinics, roads, and other services for Malaysians.
Beginning April 1, 2009, the government had decided that the levy for foreign workers is to be borne by the employers. This decision was made to control the influx of foreign workers at that time. Despite this, various efforts to improve on this matter were taken by the government through its six-point programme, with better management and control of the foreign workers.
Beginning Jan 1 of this year, Ahmad Husni said that the government has imposed the minimum wage onto foreign, as well as local workers, whose wages see an increase of between 30 to 50 percent of overall pay - that is, from RM600 to RM700 monthly wages, the total amount has now come up to RM900 a month.
"With its implementation, all workers will receive overtime, and they can receive between RM1,200 to RM1,500 a month," he added.
"To reduce the rising costs faced by employers, especially the small- and medium-sized industries, the cabinet today decided that the levy imposed on foreign workers in 1992, is to be enforced back, with the foreigners paying the levy instead.
"This policy is to be implemented with immediate effect for all new foreign workers, or those who are renewing their work permit or visitor's pass (temporary work)," he said in a statement.
Ahmad Husni added that the levy imposed would not be a burden to them as they are charged between RM34.16 and RM154.16 a month, compared to the rise of their monthly income which could be anywhere between RM300 to RM500 a month.- Malaysiakini, 30/1/2013, Foreign workers will now have to pay levy as in 1992