Key Information for Employers

Levy and Cost of Accommodation for Foreign Employees


Employers who implement minimum wages are allowed to deduct the annual levy on a prorated monthly basis and costs of accommodation not exceeding RM50 per month from foreign employees’ monthly wages. Employers have to notify the nearest Labour Office via email or letter regarding these two deductions. Deduction for the cost of accommodation exceeding RM50 a month requires approval from the nearest Labour Office.

Domestic servant as defined under Section 2 of the Employment Act 1955 [Act 265], Section 2 of the Sabah Labour Ordinance [Cap. 67] and Section 2 of the Sarawak Labour Ordinance [Cap. 76] are not covered under the Minimum Wages Order 2016.