The government has amended its employment regulations to exempt small and medium enterprises (SMEs) from paying the mandatory quota fee for foreign workers, provided they employ fewer than 20 expatriates.
The amendment to the Employment of Foreigners Regulations, published in the Government Gazette, is aimed at easing financial pressure and improving operational efficiency for smaller businesses, which play a key role in the national economy.
Previously, all businesses employing foreign workers were required to pay a quota fee of USD 130 per worker within a 12-month period to the Ministry of Homeland Security and Technology. Under the revised rules, this fee will be waived for SMEs whose total number of foreign employees remains below 20.
The government has also announced that any outstanding quota fees incurred by SMEs prior to the amendment will be cancelled retroactively, providing immediate financial relief.
To prevent misuse, the regulation includes provisions stating that the exemption will not apply to other SMEs established by shareholders or responsible individuals of the exempted company. Businesses that increase their foreign workforce beyond 20 employees will be required to pay the full USD 130 fee for each worker starting from the 21st employee.
In a related measure, the Ministry has been granted discretion to provide an additional one-month extension to employers facing difficulties in paying work permit fees, assessed on a case-by-case basis.
The reforms form part of the government’s broader strategy to regulate the foreign workforce, including efforts to address illegal practices and undocumented labour, while ensuring legitimate businesses can operate without undue burden.