Employing a Foreign Domestic Worker in Malaysia

A foreign domestic worker enters Malaysia through an entirely different door from a factory or plantation worker — not through a sector quota, not through the foreign-worker One-Stop Centre, and not under the full protection of labour law. The regime stands on its own, and employers who assume the process is the same as hiring a general worker often get it wrong.

This guide explains the Foreign Domestic Helper (FDH) pathway managed by the Immigration Department of Malaysia: the permitted source countries, the employer income requirements, the minimum salary under MoUs, the security bond, and why domestic workers are “carved out” of mandatory EPF contributions, most of the Employment Act 1955, and the sector quota system.

Why are foreign domestic workers under their own regime?

In the ordinary foreign-worker system, an employer applies for a quota by sector, through the One-Stop Centre and a centralised management system, before a permit is issued. Domestic workers do not go through that pathway. Applications are made directly to the Immigration Department under the FDH category, and are usually handled through a JTKSM-licensed employment agency without case-by-case quota approval.

This distinction matters because it determines almost every subsequent obligation — from the documents required, to whether statutory contributions apply. Domestic workers are categorised as “domestic employees” (formerly “domestic servants”), a category that older Malaysian law deliberately treats differently from ordinary workers.

An approved foreign domestic worker enters with a Visa With Reference (VDR) and holds a Temporary Employment Visit Pass (PLKS). According to the Immigration Department, an FDH candidate must be female, aged between 21 and 45, medically certified fit, and residing in her home country at the time the application is made.

Which source countries are permitted?

The Immigration Department lists nine permitted source countries for foreign domestic workers: Indonesia, Thailand, Cambodia, the Philippines, Sri Lanka, India, Vietnam, Laos and Nepal.

Each source country is bound by its respective bilateral agreement (MoU) or embassy protocol, which sets the minimum salary, the legal recruitment channels, and contract endorsement. The most prominent example is Indonesia, which signed an MoU with Malaysia in April 2022. The Human Resources Minister at the time confirmed the minimum salary under that MoU, saying “RM1,500 as per our MOU” (The Star). The MoU also mandates recruitment through a single official channel (One Channel System) and contract endorsement by the Embassy of the Republic of Indonesia.

How much employer income and security bond are required?

The minimum employer income requirement and the security bond vary by source country. Based on the Immigration Department:

Source country	Employer net income	Security bond
Indonesia	RM7,000	RM250
Philippines	RM5,000	RM750
Sri Lanka	RM5,000	RM750
India	RM5,000	RM750
Thailand	RM3,000	RM250
Cambodia	RM3,000	RM250
Vietnam	RM3,000	RM1,500
Laos	RM3,000	RM1,500

The security bond is not a sunk payment — it is a guarantee that can be reclaimed when the domestic worker returns to her home country, subject to conditions. For Indonesia, the Immigration Department sets a minimum employer net income of RM7,000, and the recruitment cost through an appointed Malaysia Recruitment Agency (MRA) is capped at RM15,000 (maximum). This RM15,000 cap is also confirmed by the Ministry of Human Resources as the maximum recruitment cost for a new Indonesian domestic worker (The Star). This RM15,000 cap is specific to Indonesia — the Immigration Department does not extend it to other source countries, each of which is subject to its own bilateral MoU arrangement or embassy contract endorsement.

It should be noted that the Immigration Department’s own FDH page is inconsistent in its terminology: the RM7,000 figure is listed under the same “Employer Net Income” table heading used for all countries, but the Indonesia-specific MoU note on the same page refers to it as “Household income”. This guide uses the term “employer net income” because it matches Immigration’s official table heading.

If an employer wishes to hire more than one worker, the income threshold rises. According to the Immigration Department, a second worker requires income above RM10,000, while a third worker requires above RM15,000.

Why are domestic workers exempted from EPF?

This is among the most important features of the FDH regime. In October 2025, an amendment to the EPF Act made EPF contributions mandatory for foreign workers — a rate of 2% from the employer and 2% from the worker. However, domestic workers are explicitly exempted.

According to activpayroll’s analysis of the amendment, “Domestic helpers (e.g., maids, cooks, cleaners) with valid permits are excluded from this requirement.” This means that even though foreign colleagues in other sectors must now contribute, domestic-worker employers are not required to do so. EPF contributions for domestic workers remain voluntary only.

This exemption stems from the definition of “domestic servant”, which has historically been excluded from the scope of statutory contributions — a legal legacy that places domestic work in its own category, distinct from ordinary employment.

How does the Employment Act 1955 treat domestic workers?

Since the Employment (Amendment) Act 2022 took effect on 1 January 2023, almost all workers in Malaysia are protected by the Employment Act regardless of wages. But domestic workers are still treated separately.

According to Rahmat Lim & Partners, “The Amendment Act continues to exclude domestic employees from Part XII of the Employment Act with the exception of the provision on rest days.” Part XII covers rest days, working hours, leave and other conditions of service. As a result, domestic workers:

• Are entitled to one rest day per week (a new protection under the amendment).
• Are not subject to the maximum weekly working-hour limit, paid public holiday entitlement, and other standard conditions of service that apply to ordinary workers.

This makes the domestic-worker employment relationship governed more by the employment contract and the source-country MoU than by the Employment Act itself — which is why embassy contract endorsement becomes so important.

Levy, insurance and quota — what applies?

Because domestic workers do not go through the sector quota system, employers do not need to apply for an FWCMS quota as they would for general workers. Applications are handled directly through the Immigration Department, usually via a licensed agency.

The annual foreign-worker levy still applies and is paid at permit renewal. The levy rate varies by sector and region and can change, so employers should confirm the current rate directly with the Immigration Department.

Two mandatory insurance protections also apply. For hospital admission, foreign domestic workers are included in the Foreign Worker Hospitalisation and Surgical Scheme (SKHPPA, with the card known as SPIKPA) under the Ministry of Health Malaysia — mandatory since 1 January 2011, with the employer bearing the premium for the domestic worker, and coverage of up to RM10,000 per year at government hospitals. For work-related injuries, a foreign domestic worker holding a valid passport and an Immigration work pass must be covered by PERKESO (SOCSO) under the Employment Injury Scheme of the Employees’ Social Security Act 1969 (Act 4) since 1 June 2021; registration and contributions are mandatory.

In short, a foreign domestic worker occupies a hybrid position: still subject to the levy and mandatory insurance, but carved out of the sector quota, the mandatory EPF contribution, and most of the Employment Act’s protections.

What next

Before starting an application, confirm three fundamentals: your chosen source country and the MoU that binds it, whether your income meets the threshold for that country, and the JTKSM-licensed employment agency that will handle the Immigration application. Keep the embassy-endorsed employment contract as the primary reference document, because the Employment Act protects only a small portion of this relationship.

Levy rates, income requirements and minimum salaries can change when MoUs are reviewed — confirm the latest figures with the Immigration Department of Malaysia and the source-country embassy before signing any agreement. This article is an AI-generated draft that has not undergone legal-expert review; it is not legal advice.