Concern over levy payment

The Star
By LOH FOON FONG and P. ARUNA
newsdesk@thestar.com.my

PETALING JAYA: The Indonesian Embassy expressed concern that foreign workers may be made to pay the levy even if their employers do not adhere to the minimum wage.

Its minister counsellor for information, social and cultural affairs Suryana Sastradiredja said that they would study Wednesday’s decision by the Cabinet to reinstate a 1992 ruling that foreign workers pay the levy instead of their employers.

The decision was made to help reduce the burden of employers, especially those in the small and medium-scale industries, following the hike in the minimum wage from Jan 1 this year.

Suryana said the embassy had received reports that employers did not pay the levy even though they were required to since April 2009.

“We are concerned because some companies may not implement the minimum wage”.

Suryana added that the embassy had no issue with the levy if companies adhere to the RM800 to RM900 salary per month as stipulated.

He said there are 1.1 million documented Indonesian workers working in the plantation, construction, manufacturing and farming sectors.

Nepali Embassy labour attache Amal Kiran Dhakal said they were waiting for details following the announcement.

There are 350,000 Nepali workers employed in the manufacturing, security, plantation and farming sectors, he said.

In Malaysia, foreign workers are allowed in the manufacturing, construction, plantation, agricultural, services and domestic help sector.

The services sector consists of eleven sub sectors – restaurants, cleaning services, cargo handling, launderette, caddy in golf club, barber, wholesale or retail, textile, metal or scraps, welfare homes and hotel or resort.

Selva, a restaurant owner, said the levy for the services sector, especially for restaurants, was too high.
He said he was now paying RM1,850 annually for each worker in his restaurant.

“Our workers will not be able to afford it and may refuse to work,” he said, adding that he hoped the Government would reconsider its decision.

He also has to pay RM210 for insurance premium and about RM150 for each worker’s accommodation and utilities each month.