JTKSM Licence C · No. 657 · Est. 2018
Updated 2026 · Foreign Worker Levy Rates

Foreign Worker Levy Guide (2026)

The foreign worker levy is a mandatory annual payment employers must make to the Malaysian government for every foreign worker employed — separate from wages, EPF, and SOCSO. Levy payment follows eQuota approval, and missing a payment blocks permit renewal entirely.

RM1,850Manufacturing/Construction/Services
RM640Plantation/Agriculture
AnnualPayment Cycle
FWCMSPayment Platform
Levy Rates by Sector

Current Foreign Worker Levy Rates (2026)

SectorAnnual Levy (per worker)
ManufacturingRM1,850
ConstructionRM1,850
ServicesRM1,850
Mining & QuarryingRM1,850
PlantationRM640
AgricultureRM640

*** Rates are subject to government revision. We confirm current rates before processing any levy payment on your behalf.

Security Bond: RM1,500 per worker, payable upfront by the employer.

Compliance Cost Risk

Effective September 2026, employers must register and verify each foreign worker’s accommodation address via the FOMEMA portal. Failure to comply may result in levy forfeiture or permit cancellation, creating direct financial exposure beyond the standard levy and bond costs.

Payment Process

How Levy Payment Works

01

Levy Notice Generated

Issued upon quota approval (new hires) or 90 days before PLKS expiry (renewals).

02

Payment via FWCMS / eServices

Levy paid online through the Foreign Workers Centralised Management System or approved eServices channels — required before the VDR (Calling Visa) can be issued.

03

Receipt Verification

Payment receipt attached to the worker's file — required before VDR issuance or PLKS renewal.

Levy Timeline

Levy Payment Obligations by Year

Year of EmploymentLevy Requirement
1–10Annual levy payment required for all foreign workers, aligned with PLKS renewal cycles.
11Levy renewal continues for workers reaching their 11th year, ensuring uninterrupted permit validity.
12Annual levy payment remains mandatory in the 12th year, aligned with PLKS renewal cycles.
13Final extended levy cycle for long‑tenured foreign workers, subject to Immigration approval and sector‑specific rules.

*** Levy obligations beyond the 10th year are subject to Immigration Department approval and may vary by sector.

FAQ

Levy Payment FAQ

What happens if the levy isn't paid on time?
Late levy payment blocks VDR issuance for new workers and PLKS renewal for existing workers, effectively suspending the worker's legal status until payment is settled, plus potential late payment penalties.
What happens if housing isn’t registered with FOMEMA?
Failure to register and verify worker accommodation addresses via the FOMEMA portal (mandatory from September 2026) may result in levy forfeiture or permit cancellation, blocking PLKS issuance or renewal.
Can levy be deducted from a worker's wages?
No. The foreign worker levy is an employer obligation and must not be passed on to workers — this is consistent with both Malaysian labour law and the RBA Employer Pays Principle.
Related Services

Levy & Workforce Compliance Services

FWCMS, VDR & PLKS Explained

Comprehensive guide to Malaysia’s foreign worker systems — covering FWCMS quotas, VDR applications, and PLKS permit renewals.

Learn more

Quota & Levy Integration

FWCMS eQuota applications aligned with levy payments to avoid delays in approvals.

Learn more

Act 446 Housing Compliance

Ensuring levy‑paid workers are housed under Act 446 standards with JTKSM approval coordination.

Learn more

Payroll & Statutory Compliance

Integration of levy payments with EPF, SOCSO, and statutory deductions for full workforce compliance.

Learn more

Never miss a levy deadline

We track and process levy payments as part of our permit renewal service.