Job Seeker Handbook

Malaysian Labour Law : Regulation of Employment

3. WORKMEN'S COMPENSATION

3.4 Foreign Worker Insured by Employer

  • Under the Foreign Worker's Scheme, an employer of foreign workers is responsible to pay an insurance premium of RM86 per year per worker.
  • An employer is not allowed to deduct the earnings of a worker for the payment of insurance premium. An employer found guilty of such action, shall be liable, on conviction to a fine of RM5,000 or to imprisonment for a 1 year term or to both.
  • There are 11 insurance companies being selected as insurer to issue insurance policy under the Foreign Worker's Scheme.
  • Employer can purchase such insurance from any of the insurance companies listed :
    • Amanah General Insurance Berhad
    • Arab Malaysian Assurance Berhad
    • London & Pacific Insurance Company Berhad
    • Mayban Assurance Berhad
    • MNI Takaful Sdn. Bhd.
    • Malaysia British Assurance Berhad
    • Malaysian Assurance Alliance Berhad
    • Malaysia National Insurance Berhad
    • The Pacific Insurance Berhad
    • Syarikat Takaful
  • An employer found guilty of not buying an insurance for workmen's compensation, shall be liable, on conviction to fine of RM20,000 or imprisonment for a term of 2 years or to both.

<< 3.3 Individual Covered Under The Workmen's Compensation Act 1952 | 3.5 What Should Be Done If A Worker Is Involved in an Accident >>

Table of Contents

  1. Regulation of Employment (HTML)
    1. Hiring
    2. Firing
    3. Workmen's Compensation
    4. Sexual Harrassment
    5. Occupational Safety and Health Act
    6. Dispute
    7. Pension
    8. EPF
    9. SOCSO
  2. Statutory Holiday (PDF)
  3. Salary Act (PDF)