Human Resources Minister Datuk Seri M Saravanan announced that the government has agreed to extend the implementation of the multi-tier levy system until January 1, 2022. The Cabinet made this decision after considering the impact of the coronavirus epidemic on employers.
The statement stated that with the health and economic crisis brought about by the COVID-19 pandemic, there is a huge impact on various industries including employers. The government is very concerned about the challenges that my country is facing. Therefore, the Cabinet agreed to extend the implementation of the multi-tier levy system for employment of foreign workers until January 1, 2022.
Prior to this, the multi-tier levy system has been postponed from January 1 this year to July 1 and it is now further postponed to January 1 next year. Saravanan pointed out that the multi-tier levy system is expected to reduce my country’s high dependence on foreign workers, because the levy rate will increase according to dependency ceiling.