Cost structure for hiring Indonesian domestic workers to be reviewed every three months, says Saravanan

KUALA LUMPUR: The cost structure for hiring Indonesian Domestic Helpers (IDPs) will be reviewed every three months by the Malaysia-Indonesia Joint Working Group (JWG), says Datuk Seri M. Saravanan (Photo).

The Human Resources Minister said in a statement here on Tuesday (April 5) that this aims to ensure that the cost structure is in line with current needs and takes into account changes in transport tariffs and the cost of testing for health.

He said the IDP recruitment cost structure agreed under the Memorandum of Understanding on the Recruitment and Protection of Indonesian Domestic Workers (MOU) covered 15 cost elements in Malaysia and Indonesia.

“Examples of cost items in Malaysia include immigration security deposit, insurance, health check, tax and work permit.

“Examples of cost components in Indonesia include passport, work visa, health certificates, skill certificate, and psychological test.

“All PDI recruitment costs are the responsibility of employers in accordance with the Fair Recruitment Initiative guidelines issued by the International Labor Organization (ILO),” he said.

Saravanan said the MoU which was signed on April 1 in Jakarta, Indonesia was an improvement from the previous MoU where the previous cost structure only described the components involved without setting the price rate.

“Various issues arose during the implementation of the previous MOU due to the fixed cost structure and this being too low compared to the current market, which forced employers to pay more to obtain of PDI services and that has been resolved in the new memorandum of understanding,” he said.

Saravanan said that through the MoU, employers were expected to save RM2,000-3,000 on recruitment costs as there was no longer a quarantine requirement for IDPs except those who had tested positive in the Covid-19 screening test carried out in the country. – Bernama

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