Lim said this was to ensure that the federal government did not lose out on financial gains.
The levy was supposed to be borne by employers, he added, but the government had received complaints on the matter.
“We understand that it is quite a heavy burden, so we are allowing a 80-20 share.
“The government is expected to collect quite a large amount – RM1 billion in three years. That is what we hope.
“On one hand, we can increase our income, and on the other hand we can ensure the economy continues to grow so it does not stall,” he said in a press conference on the sidelines of the Annual Property Developers Conference: CEO Series here today.
Lim added that the government was more interested in retaining skilled foreign workers.
“It would not be worth it for us to send back skilled workers and then take unskilled workers,” he said.
Since 1992, levy payments for foreign workers had been implemented by the government and fully borne by the workers.
But on March 25, 2016, the Cabinet decided that the levy, amounting to RM10,000 per worker per year, would be paid by employers beginning Jan 1 this year.
This only applies to foreign workers in formal sectors such as manufacturing, construction, plantation, services, agriculture, mining and quarries.
It was previously reported that foreign workers who hold temporary foreign worker permits and have been employed for 10 years can extend their employment duration for a maximum of three years.