PUTRAJAYA – The implementation of a multi-tier levy system for the employment of foreign workers has been postponed to January 1 next year, said Datuk Seri M. Saravanan.
In a statement today, the human resources minister said the decision was made at a cabinet meeting on Wednesday.
Previously, the multi-tier levy system, which had been scheduled to take effect on January 1 this year, was postponed to July 1.
“This decision takes into account the challenges posed by the Covid-19 pandemic affecting the health and economic sectors, in turn having a huge impact on various industries,” said Saravanan.
When the multi-tier levy system is implemented, he said, the employment of foreign workers will be based on industries’ actual needs.
“It is expected to reduce the country’s high dependence on foreign workers, because the levy rate will increase according to the dependency ceiling.”
He added that the eQuota module under the foreign workers’ centralised management system will be used to implement the levy system.
The module will ensure transparency in the process of determining the foreign worker quota for employers, and will be used for the recruitment of new workers from source countries, he said. – Bernama, June 5, 2021
