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 · September 2026
How we got here.
A multi-tier levy was first planned for January 2020 and postponed more than once. The Prime Minister revived it in September 2023, and the target has since slipped from January 2025 to 2026. Each entry links to its source.
- Dec 2024
FMM requests 6-month advance notice
The Federation of Malaysian Manufacturers said MTLM details should ideally be announced six months in advance, so industry has time to adjust budgets and business operations. No government commitment on that request as of last check.
Free Malaysia Today ↗ - 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.
The Edge Malaysia ↗ - Jul 2025
PAC hearing: RM300–500 minimum hike floated
A Home Ministry official told a Public Accounts Committee proceeding the proposed minimum increase under MTLM was estimated at RM300–500 per worker — described as a preliminary proposal. 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, citing the 13th Malaysia Plan.
Free Malaysia Today ↗ - Nov 2025
Dewan Rakyat reaffirms 2026 target
On 3 November 2025, Deputy Human Resources Minister Abdul Rahman Mohamad told the Dewan Rakyat the government would implement the multi-tier levy beginning in 2026, without committing to a gazette date. He also said legally registered foreign workers had fallen 13% in a year, to 2.13 million.
Bernama ↗ - Feb 2026
HR Minister: MTLM this year, with higher rates
On 10 February 2026, Human Resources Minister Ramanan Ramakrishnan told the Dewan Rakyat the multi-tier levy would roll out in 2026 with higher rates and penalties for firms that don't cut their reliance on foreign workers. The government intends to channel levy collections into a dedicated trust fund returned to employers for automation and reskilling. He gave no rates or start date.
The Edge Malaysia ↗ - Jul 2026
Foreign-worker management moves to KESUMA
Following a Cabinet committee decision on 30 June 2026, endorsed by the Cabinet on 1 July, the Ministry of Human Resources (KESUMA) took full charge of the foreign-worker One Stop Centre, and quota applications moved fully online to the eQuota module in FWCMS — the system FMM wants MTLM's tiers built into (see next entry).
RTM ↗ - Jul 2026
FMM: build MTLM into eQuota
In a 7 July 2026 statement, FMM noted that from 6 July all quota applications go exclusively through eQuota, and urged KESUMA to build MTLM's tiered levy into eQuota approvals. Firms keeping foreign workers at or below 10–15% of their workforce should be considered for preferential rates, potentially below today's RM1,850, with progressively higher levies — and advance notice — for heavier users.
FMM ↗ - Aug 2026
Budget 2027 set for 9 October
The Finance Ministry's 18 August pre-budget statement confirmed Budget 2027 will be tabled on 9 October 2026 and said reliance on low-skilled foreign labour will keep being reduced. It did not mention the levy. As of late September 2026, MTLM rates are still not gazetted.
Ministry of Finance ↗
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 by each employer's dependence on foreign workers.
- · A Home Ministry official's preliminary estimate (PAC report, July 2025) puts the minimum increase at RM300–500 per worker versus today.
- · The government's stated target is 2026 — most recently repeated by the HR Minister in February 2026 — but no gazette date had been published by late September 2026.
- · Levy collections are planned to go into a trust fund returned to employers for automation and reskilling (HR Minister, February 2026).
- · Employer associations (FMM, MEF) are being consulted; FMM has asked for the details six months in advance.
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.
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.
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 KESUMA, the Immigration Department (JIM) and the federal gazette before acting.