Cost of hiring a foreign worker in Malaysia
All employer costs per worker, per year for agriculture (smallholder farms, livestock and fresh-produce operations) — levy, bond, FOMEMA, EPF, SOCSO, insurance, PLKS and Act 446 accommodation in one place.
Recruitment agent fee | RM 3,000one-time |
VDR (Visa with Reference) feeEstimate | RM 1,200one-time |
Security bondRefundableEstimate | RM 500one-time |
Annual levy | RM 640/ year |
FOMEMA medicalEstimate | RM 200/ year |
SPIKPA insuranceEstimate | RM 120/ year |
FWIG (insurance guarantee)Estimate | RM 50/ year |
PLKS / VP(TE) renewalEstimate | RM 60/ year |
SOCSO Employment Injury (employer) | RM 255/ year |
EPF (employer 2%) | RM 408/ year |
Accommodation (Act 446) | RM 1,800/ year |
EPF (employee 2%, deducted from wage) | RM 408/ year |
What goes into the cost?
Hiring a foreign worker in agriculture carries one-time costs (recruitment agent fees, the Visa with Reference, and a refundable security bond) and recurring annual costs (the foreign worker levy, FOMEMA medical screening, SPIKPA insurance, the FWIG insurance guarantee, PLKS pass renewal, SOCSO, employer EPF, and accommodation under Act 446). Most smallholder farms and livestock operations provide on-site housing — the accommodation figure reflects a nominal on-farm housing cost; adjust it to zero if your operation provides housing at no charge. The calculator separates one-time from recurring costs so the multi-year projection reflects what you actually pay each year.
Employer EPF (2%) and the employer's SOCSO Employment Injury contribution (1.25%) are calculated from the monthly wage. The employee's 2% EPF share and 0.5% SOCSO Invalidity share are shown for reference only — they are deducted from the worker's wage and are not employer costs. SOCSO rates are effective 1 July 2024.
Across a multi-year agriculture hire the one-time costs land almost entirely in year one. The recruitment agent fee, the Visa with Reference (VDR) and the security bond are paid up front to bring the worker in, while the levy, FOMEMA, SPIKPA, FWIG, PLKS renewal, SOCSO, employer EPF and accommodation repeat every year the worker stays. That is why the first-year total per worker is higher than each later year, and why the projection adds only the recurring lines from year two onward.
The security bond is shown as a first-year cash outlay but it is not a true expense: it is a refundable banker's-guarantee deposit that the employer recovers once the worker is repatriated and there are no outstanding liabilities. The calculator flags it as refundable so you can see your real net cost — the levy and the other recurring lines are the figures that actually leave your books each year.
Agriculture-specific rules
Agriculture sits in the lower foreign-worker levy band — RM 640 per worker per year in Peninsular Malaysia and RM 410 in Sabah and Sarawak. Quota is not allocated in bulk: every application is assessed case-by-case through the One Stop Centre (Pusat Setempat) under the Ministry of Home Affairs.[1]
The distinction between agriculture and plantation is subtle but financially significant. Both sectors pay RM 640 in Peninsular Malaysia. In Sabah and Sarawak, however, agriculture employers pay RM 410 while plantation employers pay RM 590 — a difference of RM 180 per worker per year that adds up quickly across a full workforce.[1]
These rules map directly onto the cost lines in the calculator. The One Stop Centre quota process and the Visa with Reference (VDR) sit behind the one-time agent fee and VDR charge paid in year one. Once a worker is on your payroll, the recurring lines kick in each year: levy (RM 640 Peninsular, RM 410 Sabah/Sarawak), FOMEMA medical, SPIKPA insurance, FWIG insurance guarantee, PLKS renewal, SOCSO Employment Injury (employer 1.25%), employer EPF (2%) and accommodation. Employers in Sarawak will also see the FWTA fee as an additional annual line.
Agriculture under the 2026 multi-tier levy
Today, agriculture pays a flat foreign-worker levy of RM 640 per worker per year in Peninsular Malaysia (RM 410 in Sabah and Sarawak). That single rate applies regardless of how many foreign workers an operation employs, and it is the figure the calculator uses for the agriculture sector.
The 2026 multi-tier levy (MTLM) has not yet been gazetted. Until it is, no new rates are in force and the calculator keeps using the current flat levy. Agriculture employers should monitor official announcements from the Ministry of Home Affairs, as any gazetted rates will take effect on a government-determined date.
Once gazetted, the MTLM is expected to scale with an employer's reliance on foreign labour rather than stay flat — meaning the per-worker levy could rise as foreign-worker dependency increases. Agriculture's current lower band reflects the sector's recognised role in the national food supply and its structural labour shortages; whether that differential is preserved under MTLM has not been confirmed. We will update the calculator with the official rates as soon as they are published.