KUALA LUMPUR: Federation of Malaysian Consumers Association (Fomca) said the ruling that levy payments for foreign workers should be fully incurred by employers needed to be discussed.
Federation of Malaysian Consumers Association (Fomca) Deputy President Mohd Yusof Abdul Rahman said the government needed to look at overall aspects to come up with a better solution regarding the levy payment.
“If the foreign workers complain that they cannot afford to pay their share of the levy, the employers also will having a problem including increasing the cost for each foreign workers,”
Yesterday, Finance Minister Lim Guan Eng said the government agreed to let employers pay only 20 per cent of the annual RM10,000 levy for each foreign worker, while the foreign workers themselves would bear the remaining 80 per cent.
“The government’s decision yesterday to make foreign workers pay 80 per cent was giving them an option whether to extend for another three years or not.
“If the foreign workers cannot afford to pay, then they will not have any option to continue working in this country,” said Yusof.
He said it was reasonable if the foreign worker could not afford to pay the 80 per cent levy because of their low income.
“If the government can come up with an idea such as half the payment by the employers and the other half by the foreign workers, that would be great,” he added.
All employers must bear the cost of levy payments for new foreign workers as well as foreign workers who have renewed their Temporary Employment Visit Pass (PLKS).
The policy will start on Oct 1 and only applicable for skilled foreign workers who worked for at least 10 years and opt for a permit extension of a maximum of three years, RM10,000 levy a year for each foreign worker.