KDN implements return of foreign worker levy to employers – Saifuddin

PUTRAJAYA – The Ministry of Home Affairs (KDN) will implement a levy refund policy that is more employer and industry friendly effective from today.

It is a step to continue the government’s commitment to improve the management of the foreign worker management ecosystem in this country, said the Minister of Home Affairs.

Datuk Seri Saifuddin Nasution Ismail said, to ensure that the levy return process to employers runs smoothly, the government has made significant improvements to the levy return policy and process which is more friendly to employers and industry.

Among the measures taken is to reduce the processing time for levy refunds by 47 percent, from 53 days to 28 days for applications at the approval stage of the Director General of the Immigration Department of Malaysia.

While 51 percent was reduced from 77 days to 38 days for applications at the approval stage of the Secretary General of the Ministry of Interior.

In addition, allowing employers to claim a refund of the foreign worker levy payment after the six month period of validity of the Conditional Approval Letter with the entire remaining quota of foreign workers handed back to the government,” he said in a special press conference today.

Saifuddin Nasution added that the improvement also succeeded in shortening the recruitment process and will benefit all employers who need the return of the levy immediately.

Therefore, he said, it will further give a positive multiplier effect to the national economy.

In another development related to foreign workers, he also informed that in planning the management of the country’s foreign workers, the government is guided by four main components that focus on lowering the cost of migration of foreign workers, speeding up the process of entry of foreign workers, ensuring the welfare of workers and the interests of employers are preserved.

In this regard, he said, the 10th Joint Committee Meeting between the Minister of Home Affairs and the Minister of Human Resources on the Management of Foreign Workers on January 16, the two ministries together with the relevant Regulatory Agency (AKS) have reassessed the real needs of the industry which were read together the projection of the country’s manpower needs and the current scenario then make a consideration of the need for foreign worker employment quotas.

As a result, the decision was confirmed on 15 February by the Cabinet of Ministers that the remaining quota of employment of foreign workers in the formal sector who are still active and have paid the levy but have not yet been issued a Visa with Reference (VDR) on 31 March 2024 will be canceled with the quota levy payment returned to the employer.

“While the deadline for the entry of new formal sector foreign workers with VDR is this 31 May and no more entry of formal sector foreign workers from the active quota is allowed from 1 June 2024.

“Therefore, I urge all relevant employers to speed up the entry of foreign workers while at the same time ensuring compliance with the conditions and labor laws that the Government has set,” he stressed.

Leave a Reply

Your email address will not be published. Required fields are marked *