Good news for Vietnamese workers in Malaysia.

According to the Vietnam News Agency correspondent in Kuala Lumpur, Malaysian Deputy Prime Minister Ahmad Zahid Hamidi announced that from January 1st, employers will be responsible for paying income tax for the foreign workers they employ.

Under this new regulation, foreign workers in Malaysia will no longer have their monthly salaries deducted for income tax as was previously the case.

Illustrative image. (Source: Human Resources Online)

According to Deputy Prime Minister Ahmad Zahid, this policy change in Malaysia aims to strengthen employers' responsibility towards their workers, while also helping to prevent foreign workers from absconding, illegally changing occupations, or overstaying their visas and becoming illegal laborers.

Ahmad Zahid also urged employers to strictly adhere to regulations regarding the provision of housing for workers, as well as minimum wage regulations. These regulations not only help ensure workers' rights but also contribute to preventing labor unrest and human trafficking.

Officials from the Malaysian Employers Federation estimate that the new tax regulations will result in an annual revenue loss of approximately 5 billion ringgit (about US$1.12 billion).

Income tax, along with Goods and Services Tax (GST), significantly impacts the income and living standards of foreign workers in Malaysia, including Vietnamese workers, especially in the context of the current devaluation of the Malaysian currency.

According to VNA