The government on Wednesday stopped issuing work permit s for jobs in Malaysia that do not meet the minimum salary rate set by the Malaysian government.

The Malaysian government has set a minimum monthly salary of Rs 27,000 (900 Malaysian ringgit). Earlier, the Nepali migrant workers were getting a monthly salary of Rs 19,000 (MR 650). 

The Department of Foreign Employment (DoFE) announced that it will not endorse any contract failing to meet the minimum wage of MR 900. The DoFE said the employer will now have to submit an original copy of ‘notary verified letter’ specifying the minimum wage to get both the pre-and final-work approval from the Nepal government.

“The decision has legally ensured the rights of Nepali migrants to get the minimum salary set by the Malaysian government,” said DoFE Director General Rabindra Mohan Bhattarai.

Malaysia had on January 1 announced a minimum monthly salary of MR 800-900 for foreign workers, depending on the nature of work. The decision was later revised, fixing the minimum salary at MR 900 for migrants working in all provinces.

Government officials and the recruiting agencies here said that implementation of minimum wage will increase the income of the migrant workers.

Malaysian media, citing the Malaysian Ministry of Finance, reported that Nepali migrants had remmitted MR 1.90 billion (Rs 58.90 billion approximately) from Malaysia in 2012. Nepal is the third largest recipient of Malaysian remittance after Indonesia and Bangladesh.

Government officials, however, said the pay rise would benefit the Malaysian government over migrant workers due to mandatory levy imposed there.  “Unlike in the past, migrant workers now stand to lose a large portion of their salary in the form of levy to the Malaysian government,” said an official.

Under the new regulation, workers also have to pay levy ranging from MR 410-1,850 per year depending on the sector they work. They have to pay MR 410 for plantation, MR 500 for agriculture, MR 1250 for manufacturing and MR 1,850 for service sector per year.

Malaysia is the largest labour destination for Nepali workers. According to the DoFE, 156,770 Nepalis left for Malaysian jobs in 2012/13.

Published on: 2 January 2014 | The Kathmandu Post