PUTRAJAYA, Oct 9 — The Philippines’ plan to raise the minimum salary of its domestic helpers from US$400 to US$500 (about RM1,800 to RM2,200) is an unnecessary financial burden for employers here and could discourage locals from hiring them legally, an unnecessary financial burden for employers.
The Association of Employment Agencies Malaysia (PAPA) said the issue was discussed in a recent meeting with the Human Resources Ministry’s Policy Division, chaired by its secretary, Rafea’ah Nahar.
“The Gulf countries have rejected the proposal and the Philippines government had retracted the implementation there, and it is hoped it would do the same in Malaysia,” PAPA president Datuk Foo Yong Hooi said in a media statement today.
Foo said Malaysian employers already face rising costs and that the proposed increase would discourage families from hiring domestic workers legally.
“The US$500 is a huge financial burden to most Malaysian employers who wish to employ domestic helpers from the Philippines,” he said.
He added that Malaysia’s objection was made formally and hoped Manila would consider a similar exemption as given to the Gulf nations.
“We are optimistic the Philippines will understand Malaysia’s situation, as our cost structure and income levels are very different,” Foo said.
During the meeting, PAPA also raised concerns over new administrative requirements from the Philippines, including the appointment of a Philippines Welfare Desk Officer at Malaysian recruitment agencies.
PAPA said it is open to the idea but noted that under Malaysian law, there was currently no legal provision for such a position.
PAPA also urged the Human Resources Ministry to simplify the approval process for hiring foreign workers under Section 60K of the Employment Act 1955, which deals with the employment of foreign workers, including requirements for approval, registration, and reporting by employers who hire non-citizens.
The association said that currently, the process takes at least 14 working days and does not allow corrections for minor errors.
