All recruitment costs are under the responsibility of the employer in accordance with the Fair Recruitment Initiative guidelines 

by S BIRRUNTHA / Pic by TMR FILE PIX

THE cost of hiring Indonesian domestic workers (PDI) has 15 components in Malaysia and Indonesia. 

Human Resources Minister Datuk Seri M Saravanan said this includes the cost of immigration security deposit, insurance, health check, levy and work permit in Malaysia. 

“In Indonesia, the cost components include passports, work visas, health certificates, competency certificates and psychological tests,” he said in a statement yesterday. 

He added that all PDI recruitment costs are under the responsibility of the employer in accordance with the Fair Recruitment Initiative guidelines issued by the International Labour Organisation. 

The memorandum of understanding (MoU) on recruitment and protection of PDI was signed on April 1, where the recruitment process is expected to begin soon. 

Saravanan said the newly signed MoU is also an improvement from previous MoUs where this cost structure only outlines components involved without setting a price rate. 

“This cost structure will be reviewed every three months by the joint working group (JWG) of Malaysia-Indonesia to ensure it is in line with the current needs and takes into account the changes in transportation fares and the cost of health tests,” he noted. 

Meanwhile, Saravanan also pointed out that various problems emerged in the implementation of previous MoUs due to structured fixed costs and extremely low prices compared to the current market, which caused employers to pay more for PDI services.

“However, this has been addressed in the new MoU through a quarterly cost structure review.

“In addition, employers are also expected to save between RM2,000 and RM3,000 from the cost of recruitment as there is no longer a quarantine requirement for PDIs unless they are found positive during the Covid-19 screening test in Malaysia,” he added.