Malaysia currently has 1.3mn foreign workers employed in approved sectors (2024)
This number has "almost met the industry's demand for foreign worker employment", which currently stands at about 1.8mn - the "highest number ever received," the Human Resources Ministry noted.
Additionally, 228,321 foreign workers (37.3% of the overall number) have been approved for Visas With Reference by the Immigration Department of Malaysia, and are waiting for arrival.
According to the ministry, the demand for foreign worker employment has hit about 1.8mn – the highest number ever received, it noted. In that vein, as of 26 September 2022, the ministry has approved a total of 541,315 quotas for the recruitment of foreign workers. Of that number, 436,613 quotas have made levy payments. Taking into account the 1.3mn foreign workers in Malaysia, and the531,315 quotas that have been approved, MOHR highlighted that this number has "almost met the industry's demand for foreign worker employment".
Apart from the above, it was shared that upon discussions on the issue of foreign worker entry within the industries, leaders such as those in the plantation sector will not be bringing in foreign workers all at once. Instead, the recruitment will be carried out in stages according to the needs and plans of the employer.
Employers have a period of up to 18 months to bring in foreign workers after the levy payment is settled, MOHR affirmed.
Similar to any employees in Malaysia, foreign employees receive all the protections in the Employment Act 1955. Any employer holding the wages of an employee unlawfully and committing a crime that breaches the Employment Act 1955 will face a fine of up to RM 10,000 and will be liable for prosecution in a court of law.
EA 1955 now covers ALL employees irrespective of wages
There is a caveat to this, however, those earning above RM4,000 per month exempted from certain provisions in the Act, including: Section 60(3) - Overtime rates for employees working on rest days. Section 60A(3) - Overtime rates outside working hours.
Definition of foreign worker can be varied based of focus among scholars and studies. One definition depicts that a foreign worker is a person who works in a country other than the one of which he or she is a citizen (Siti, 2014).
If you are considered a non-resident, you will be taxed at a flat rate of 30% and you will not be entitled to any of the tax reliefs enjoyed by residents, though you can claim the same tax exemptions on certain allowances, perquisites and benefits-in-kind as residents.
VP(TE) is valid for a period of 12 months. Employers can apply for VP(TE) extension 3 months before the expiry date. Employers must ensure the extension application is made before the VP(TE) expires.
As a non-local recent graduate, landing a full-time job in Malaysia can be challenging. Malaysia has government policies that prioritise hiring local Malaysian talent, as seen in the Foreign Workers & Expatriates Application guide by its Ministry of Human Resources.
Workmen's compensation is a compensation for injury to an employee or worker arising out of and in the course of employment that is paid to the worker or dependants. The employer will have to purchase a workmen's compensation insurance for workmen's compensation claims by injured employees or workers.
The NLRA does not apply to federal, state, or local governments; employers who employ only agricultural workers; and employers subject to the Railway Labor Act (interstate railroads and airlines).
The contribution rate is 1.25% of the insured monthly wages and is to be paid by the employer. The foreign worker must possess a valid passport and a Special Pass for new foreign workers OR an employment pass and Temporary Employment Visit Pass or a valid employment pass for existing foreign workers.
The Foreign Workers Compensation Scheme (FWCS) provides foreign workers for personal accident and repatriation benefits due to an accident arising out of or during his course of employment.
Introduction: My name is Errol Quitzon, I am a fair, cute, fancy, clean, attractive, sparkling, kind person who loves writing and wants to share my knowledge and understanding with you.
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