The cost structure of hiring Indonesian domestic helpers (PDI) will be reviewed every quarter by the Malaysia-Indonesia Joint Working Group (JWG).
In an official statement released on April 5, Human Resources Minister Datuk Seri M Saravanan is quoted as saying that this is to ensure the cost structure is in line with current needs and takes into account changes in transportation fares and cost of health test.
“PDI recruitment cost structure agreed through the Memorandum of Understanding on the Recruitment and Protection of Indonesian Domestic Maids (PDI MoU) covered 15 cost components in Malaysia and Indonesia,” he said.
“Examples of cost components in Indonesia include passport, work visa, health certificates, competency certificate, and psychological test. All PDI recruitment costs are under the responsibility of the employers in accordance with the Fair Recruitment Initiative guidelines issued by the International Labour Organisation (ILO),” he said. While examples of cost components in Malaysia include Immigration Security Deposit, insurance, health check, levy, and work permit, he added.
The latest signed PDI MoU was an improvement of the previous MoU where the previous cost structure only outlined the components involved without setting the price rate, according to Saravanan. He further elaborated that various problems arose in the implementation of the previous MoU due to the fixed cost structure and it was too low compared to the current market which caused employers to have to pay more to get PDI services and this has been addressed in the new PDI MoU.
“Through the MoU, employers are expected to save RM2,000 to RM3,000 on recruitment costs as there is no longer a quarantine requirement for PDIs, except for those who tested positive during the Covid-19 screening test conducted in the country,” Saravanan added.
