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.
Current Foreign Worker Levy Rates (2026)
| Sector | Annual Levy (per worker) |
|---|---|
| Manufacturing | RM1,850 |
| Construction | RM1,850 |
| Services | RM1,850 |
| Mining & Quarrying | RM1,850 |
| Plantation | RM640 |
| Agriculture | RM640 |
*** 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.
How Levy Payment Works
Levy Notice Generated
Issued upon quota approval (new hires) or 90 days before PLKS expiry (renewals).
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.
Receipt Verification
Payment receipt attached to the worker's file — required before VDR issuance or PLKS renewal.
Levy Payment Obligations by Year
| Year of Employment | Levy Requirement |
|---|---|
| 1–10 | Annual levy payment required for all foreign workers, aligned with PLKS renewal cycles. |
| 11 | Levy renewal continues for workers reaching their 11th year, ensuring uninterrupted permit validity. |
| 12 | Annual levy payment remains mandatory in the 12th year, aligned with PLKS renewal cycles. |
| 13 | Final 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.
Levy Payment FAQ
What happens if the levy isn't paid on time?
What happens if housing isn’t registered with FOMEMA?
Can levy be deducted from a worker's wages?
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 moreQuota & Levy Integration
FWCMS eQuota applications aligned with levy payments to avoid delays in approvals.
Learn moreAct 446 Housing Compliance
Ensuring levy‑paid workers are housed under Act 446 standards with JTKSM approval coordination.
Learn morePayroll & Statutory Compliance
Integration of levy payments with EPF, SOCSO, and statutory deductions for full workforce compliance.
Learn moreNever miss a levy deadline
We track and process levy payments as part of our permit renewal service.