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Kos Pekerja Asing

Cost of hiring a foreign worker in Malaysia: full 2026 breakdown

Use this sourced overview to understand what the calculators count, why year one is different from renewal years, and which official or near-official sources back the model.

For a modeled 2026 manufacturing hire in Peninsular Malaysia with a RM1,500 monthly wage, Indonesia nationality, RM5,000 agent fee and RM250 monthly accommodation, the current calculator estimates RM12,422 per worker in year one and RM5,972 annually after that. Your actual cost changes by sector, region, wage, nationality and employer assumptions.

Last verified 2026-06-07

Budgeting information only. This is not legal, tax, immigration, recruitment, or payroll advice.

Calculate by sectorCheck security bond

What costs are included when hiring a foreign worker in Malaysia?

A complete employer budget separates government charges, medical screening, insurance, statutory wage-based contributions, accommodation, recruitment assumptions, and refundable deposits.[9][4][6][7]

First-year cost versus annual renewal cost

The first year is higher because it includes one-time or upfront items such as agent/admin assumptions, VDR-related processing, and the refundable security bond; annual renewal focuses on levy, medical, insurance, PLKS, EPF, SOCSO and accommodation.[1][3]

Foreign worker levy by sector

Levy rates vary by sector and region. Manufacturing, construction and services sit in the higher Peninsular band, while plantation and agriculture sit in the lower band; Sabah and Sarawak use separate rates.[2]

Security bond by nationality

The worker security bond is a refundable guarantee set by source country, not by wage or sector. Treat it as first-year cash flow rather than a permanent fee.[3]

FOMEMA and medical checks

FOMEMA medical screening is modeled as an annual medical cost, with the calculator using the conservative female fee where the worker's gender is not captured.[4]

PLKS renewal and permit costs

PLKS / VP(TE) is the work pass cost line that recurs with renewal, separate from the broader one-time VDR and approval assumptions.[5][9]

EPF, SOCSO, and insurance

Employer EPF and SOCSO are wage-based recurring costs, while SPIKPA and FWIG are insurance-related annual lines in the model.[6][7][8]

Methodology

Kos Pekerja Asing separates one-time, annual recurring, refundable, wage-based, and user-entered assumptions so employers can distinguish budget outlay from permanent cost.[1]

The Sarawak scenario models the FWTA fee at its RM1,854 steady-state rate. The FWTA renewal fee is temporarily lower — RM1,484 from 1 June 2026 until it returns to RM1,854 on 1 January 2027 — so the modeled Sarawak annual renewal is a conservative (slightly high) figure during 2026.[10]

  1. Separate one-time costs from annual recurring costs.
  2. Mark refundable deposits separately from permanent expenses.
  3. Calculate wage-based EPF and SOCSO from monthly wage.
  4. Route uncertain or user-specific costs through the calculator inputs.

Cost components in the model

ComponentWhen paidRefundableCalculator treatment
LevyAnnualNoSector and region rate[2]
Security bondFirst year / guaranteeYesSource-country amount[3]
FOMEMAAnnualNoConservative medical-screening fee[4]
EPF employerAnnualNo2% of wages[6]
SOCSO employerAnnualNo1.75% of wages for First Category[7]
SPIKPA / SKHPPAAnnualNoInsurance premium line[8]
PLKS / VP(TE)Annual renewalNoPass renewal line[5]
VDR / approvalFirst yearNoOne-time modeled assumption[9]

Modeled 2026 scenarios (RM5,000 agent fee, RM250/month accommodation)

ScenarioYear-one per workerAnnual renewal per worker
Manufacturing, Peninsular Malaysia, Indonesia, RM1,500 wageRM12,422RM5,972[1]
Construction, Peninsular Malaysia, Bangladesh, RM1,700 wageRM12,762RM6,062[1]
Plantation, Sabah, Indonesia, RM1,500 wageRM11,162RM4,712[1]
Services (restaurant), Peninsular Malaysia, Nepal, RM1,700 wageRM13,012RM6,062[1]
Agriculture, Sarawak, Indonesia, RM1,500 wage (includes RM1,854 FWTA fee)RM12,836RM6,386[1]

Compare by sector

SectorCommon cost driversCalculator
ManufacturingSector levy, region, wage, source country, bond, FOMEMA, insurance, PLKS and accommodation.Open calculator
ConstructionSector levy, region, wage, source country, bond, FOMEMA, insurance, PLKS and accommodation.Open calculator
PlantationSector levy, region, wage, source country, bond, FOMEMA, insurance, PLKS and accommodation.Open calculator
AgricultureSector levy, region, wage, source country, bond, FOMEMA, insurance, PLKS and accommodation.Open calculator
ServicesSector levy, region, wage, source country, bond, FOMEMA, insurance, PLKS and accommodation.Open calculator
MiningSector levy, region, wage, source country, bond, FOMEMA, insurance, PLKS and accommodation.Open calculator

Related pages and tools

Frequently asked questions

The main lines are levy, security bond, FOMEMA, insurance, PLKS, VDR or approval assumptions, EPF, SOCSO, accommodation, and recruitment or admin assumptions where modeled.

Sources
  1. [1] The modeled cost scenarios use the production calculator model with shared assumptions of one worker, a RM5,000 agent/admin fee and RM250 monthly accommodation, varying sector, region, source country and monthly wage. (estimate, 2026-06-07)
  2. [2] Foreign-worker levy rates vary by sector and region; current published bands are modeled from the Immigration Department VP(TE) fee table and existing levy guide citations. (.gov.my, 2026-06-02)
  3. [3] Worker security bond amounts are modeled under the worker PLKS regime by source country and are treated as refundable cash flow. (.gov.my, 2026-06-06)
  4. [4] FOMEMA medical screening is modeled as an annual medical cost, using RM217 as the conservative single figure where gender is not captured. (estimate, 2026-06-02)
  5. [5] PLKS / VP(TE) renewal is modeled as a recurring work-pass cost line. (.gov.my, 2026-05-31)
  6. [6] Employer EPF contributions for non-citizen employees are modeled at a 2% employer rate on wages from October 2025. (.gov.my, 2026-05-28)
  7. [7] Foreign workers under 55 are modeled under SOCSO First Category with a 1.75% employer contribution and a separate employee Invalidity share. (.gov.my, 2026-06-02)
  8. [8] SPIKPA / SKHPPA is modeled as an annual insurance premium line and should be verified against the chosen insurer. (estimate, 2026-05-27)
  9. [9] Visa with Reference (VDR) applications for foreign workers are submitted online through FWCMS while the worker is abroad; calculator VDR and approval costs remain modeled assumptions. (.gov.my, 2026-05-31)
  10. [10] The Sarawak FWTA fee is RM1,854 for initial applications; renewals are RM1,484 from 1 June 2026 and return to RM1,854 on 1 January 2027. The calculator models the RM1,854 steady-state rate. (secondary, 2026-05-28)