MTLM 2026 Tracker
Malaysia's Multi-Tier Levy Mechanism will replace the current flat-rate foreign-worker levy. Rates are not yet gazetted. We're tracking every official update — leave an email and we'll send one note when the rates drop.
Last verified · May 2026
Get a heads-up when MTLM rates are gazetted.
No mailing list. Email us and we'll let you know when the gazette drops — with the sector tables and a calculator update.
How we got here.
MTLM was first floated in 2024 and has been pushed back twice. Sources below are primary — Hansard, Edge Malaysia, FMT and FMM statements.
- Jul 2025
13MP report pushes MTLM to 2026
The 13th Malaysia Plan report tabled in July 2025 confirmed Multi-Tier Levy Mechanism implementation would slip into 2026, citing employer-association consultations still in progress.
The Edge Malaysia ↗ - Jul 2025
PAC preview: RM300–500 minimum hike
The Public Accounts Committee briefing indicated the lowest MTLM tier would still raise the per-worker levy by RM300–500 versus the current flat rate. Final tier thresholds were not disclosed.
The Edge Malaysia ↗ - Jul 2025
FMT confirms multi-tier delay to 2026
Free Malaysia Today reported the multi-tier levy would be delayed to 2026, attributing the slip to ongoing consultations with sectoral employer groups.
Free Malaysia Today ↗ - Nov 2025
Dewan Rakyat reaffirms 2026 target
In a 3 November 2025 parliamentary session, the Home Minister reaffirmed MTLM as a 2026 implementation target without committing to a specific gazette date.
The Star / Malay Mail (Hansard coverage) ↗ - 2025
FMM requests 6-month advance notice
The Federation of Malaysian Manufacturers publicly asked the government for at least six months' advance notice before MTLM rates take effect, to allow payroll and budget adjustments. No commitment from MOHA on that request as of last check.
The Edge Malaysia ↗
What's confirmed
Drawn from official statements and tabled reports. Verify against primary sources before acting.
- · MTLM replaces the current flat-rate foreign-worker levy (RM1,850 / RM640 by sector).
- · Structure will be multi-tier, with rates varying by sector and likely by source country.
- · Lowest tier is expected to raise the per-worker levy by RM300–500 versus today.
- · Target implementation year is 2026; no gazette date has been published.
- · Employer associations (FMM, MEF) are being consulted; FMM has asked for 6 months' notice.
What's not yet known
These are the open variables — none can be modelled in the calculator until gazetted.
- · Exact tier thresholds (number of tiers, what triggers each tier).
- · Sector-specific tier schedules — whether plantation/agriculture keep their lower band.
- · Source-country surcharges or discounts within tiers.
- · Treatment of existing PLKS-renewed workers vs. new arrivals (grandfathering).
- · Effective date — gazette publication, transition window, and first-bill cycle.
- · How Sabah and Sarawak rates change relative to Peninsular.
This page tracks public statements about Malaysia's Multi-Tier Levy Mechanism. It is not legal or tax advice and does not represent any government source. Verify rates and dates against MOHA, JIM, and the federal gazette before acting.