KATHMANDU, Oct 20: The Malaysian government is set to cover undocumented workers who have traveled to the country for employment under its social security scheme. As a major destination for Nepali workers, Malaysia will now offer social security to foreign workers who leave their employer companies, as well as undocumented workers and the family members of deceased workers who have been left without valid residential visas.
Since 2019, Malaysia has included foreign workers, including those from Nepal, within the scope of social security. However, prior to this week’s development, there was no social security plan aimed at providing additional financial protection for undocumented foreign workers and victimized families. According to Bhola Prasad Guragain, the labor counselor at the Nepali Embassy in Malaysia, employers have been directed to ensure mandatory payment of social security contributions for all workers employed in Malaysia by December.
He stated that the move is a significant advancement for the social security of migrant workers in Malaysia. "If any worker has made social security contributions for two years, Malaysia will provide social security benefits to them, even though they are undocumented workers," he said, “If a worker has accumulated contributions for two years, they will be granted social security regardless of any difficulties they face,"
Guragain said that after two years of contributions, Malaysia will provide all social security benefits to all types of workers, regardless of any incidents related to workers. According to him, undocumented Nepali workers face the most significant problems in Malaysia as they have to endure many hardships, including being denied access to treatment services in government hospitals when they fall ill.
Social security scheme to cover Nepali migrant workers, self-em...
“It is very difficult to send the body of any foreign worker who dies in Malaysia back to their home. The responsibility for sending the deceased worker back lies with the employer company,” he said, “Undocumented workers are the most affected as the companies tend to dissociate with the workers after death.” He emphasized that it is essential for Malaysia to ensure that every worker receives social security.
Guragain stated that the new policy from the Malaysian government ensures that no foreign worker should be deprived of social security. Malaysia's policy addresses some issues related to the employment of foreign workers, including Nepali workers, wherein social security benefits will be provided to the workers in the event of workplace injuries or fatalities. On average, around 400 Nepali workers die each year due to employment-related accidents and illnesses in Malaysia.
In addition to the benefits provided in case of injuries and fatalities, unemployed workers will also receive unemployment benefits until they find another job. Workers who arrive in Malaysia for employment will be provided with medical treatment in the event of being undocumented, and family members of those who have died will receive three-quarters of the monthly salary as financial security. This also includes workers who cannot work due to illness or disability.
As per Malaysian laws, the employers need to contribute 0.5 percent of the worker's salary to the social security system. The workers themselves do not need to contribute directly to the system as stated by Labor Counselor Guragain.
Currently, the process of bringing foreign workers into Malaysia, a destination country for foreign employment, has been halted. It is still uncertain when this process will reopen. On May 31, Malaysia stopped receiving workers from Nepal and all other source countries under the pretext of internal management. Since the ban on bringing in foreign workers, the number of workers traveling to Malaysia has significantly decreased. Currently, some workers are still going to Malaysia for limited jobs positions, including security guard. There is a growing interest from all source countries about when Malaysia will reopen its doors for foreign workers.
Malaysia also launched a repatriation program for foreign workers who are staying illegally after halting the entry of foreign workers. This program for foreign nationals residing illegally in Malaysia was introduced from March 1, 2024, to December 31, 2024. In the fiscal year 2022/23, as many as 219,000 Nepalis traveled to Malaysia, making it the country with the highest number of Nepali workers abroad. Additionally, the number of those unable to find work in Malaysia was on the rise. After paying high fees to reach Malaysia, many migrant workers found themselves without suitable employment, leading Malaysia to stop bringing in workers. Consequently, the number of individuals traveling to Malaysia has drastically decreased.
Including undocumented workers within the scope of social security in Malaysia bears significant benefits for migrant workers and their families. This will reduce the financial burden on the families of affected workers who face hardships while working in Malaysia. Additionally, it will lead to improvements in the productivity of foreign workers.
The number of Nepalis traveling to Malaysia is significantly high. According to data from the Department of Foreign Employment, 103,442 Nepali workers received labor permits to go to Malaysia in the fiscal year 2023/24. Among them, 101,000 were men and 2,424 were women.
