Security deposit rates for foreign workers lowered

|     Syazwani Hj Rosli     |

THE government has reduced security deposit rates for bringing in foreign workers to Brunei.

The move aims to lessen the financial burden of employers as well as to support the government’s mission to create a pro-business environment and bolster the Labour Department’s efforts in improving the ease of doing business in the country.

The new security deposit rates and other policy decisions will come into force from September 1, 2016.

The decision to ease the foreign worker recruitment policy was announced by Haji Idris bin Haji Ali, Deputy Permanent Secretary at the Ministry of Home Affairs (MoHA), in a press conference held at the Labour Department Headquarters yesterday.

According to Haji Idris, the new changes in policy and methods of payment focus on two aspects – the use of Foreign Workers Insurance Takaful Guarantee (Jaminan Insurans/Takaful Pekerja Asing or JITPA) as an addition to the current methods of payment offered, and a lower and affordable security deposit rates.

Now for JIPTA, as per the new policy, employers can pay in instalments in accordance with the work pass and special leave, and they no longer need to make substantial deposit amounts to the Labour Department. For employers who want to pay the deposit in cash and bank guarantee, the rate has been further reduced, he said.

The new policy allows deposit payments through cash, bank guarantee and the latest method, JIPTA, the deputy permanent secretary said, adding that for domestic helper services, employers can make payment by cash only, and government officers are exempted from paying security deposits.

Haji Idris bin Haji Ali, Deputy Permanent Secretary at the Ministry of Home Affairs. – SYAZWANI HJ ROSLI

As per the new policy, the security deposit rates for recruiting foreign workers from Malaysia, Indonesia, Philippines, Thailand and Singapore will be reduced from $600 to $500 while the rates for workers from Myanmar, Laos, Cambodia and Vietnam will be reduced from $900 to $700.

For workers from India, Bangladesh, Pakistan, China, Sri Lanka, Japan, Nepal and Taiwan, the new rate will be $1,600 instead of $1,800 previously and for those from Australia and New Zealand it will be $2,000, $600 less than the previous rate of $2,600.

There is no rate reduction in deposit rates for workers from Mauritius, Seychelles, Fiji, Kiribati or countries from the Oceania region.

For foreign workers from the United Kingdom, France, Germany, Italy and other European countries, the deposit requirement is reduced to $3,300 from $3,500 previously.

Meanwhile, for those from the Middle East, North America, South America and African continent, the new rate is $4,000, a reduction of $500 from $4,500 earlier.

Haji Idris called upon companies that hire or retain foreign workers to contact registered insurance or takaful operators to learn more about JIPTA. As of now, the only insurance company that offers JIPTA is Syarikat Takaful Brunei Am Sdn Bhd (TBA).

Companies will be allowed to withdraw the deposits they have paid previously once they purchased JIPTA and renewed their licence quota.

Employers’ refunding of deposits will begin on January 9, 2017 after they renewed their licence quota. Employers are also allowed to retain their deposits in the government account and claim them once their licence quota is cancelled.

To disseminate information on the new changes, roadshows will be conducted in all four districts starting with Tutong District on August 11, Kuala Belait District on August 18, Brunei-Muara District on August 25 and Temburong District on August 31.

Any employer who wishes to recruit foreign workers to Brunei Darussalam, has to make a deposit to the Labour Commissioner, for the purpose of indemnifying the Government of Brunei Darussalam against incurring any expenses whatsoever in connection with the subsistence, housing, medical care or repatriation of the workers back to their respective country, in the event of disputes, as required by the Commissioner, Haji Idris explained.

For any inquiries, employers and stakeholders can contact the Finance Section of the Labour Department at 2382703 and 2380256 ext 2300, 2301 and 2302, or visit its office at Level One of the Labour Department Headquarters.

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