Human resources minister M Saravanan said this is to ensure the cost structure is in line with current needs and takes into account changes in transportation fares and cost of the health tests.

He said the PDI recruitment cost structure agreed upon in the memorandum of understanding (MoU) on the recruitment and protection of Indonesian domestic maids covered 15 cost components in Malaysia and Indonesia.

“Examples of cost components in Malaysia include the immigration security deposit, insurance, health checks, levy and work permit.

“Examples of cost components in Indonesia include the passport, work visa, health certificates, competency certificate and psychological tests.

“All PDI recruitment costs are under the responsibility of the employers, in accordance with the fair recruitment initiative guidelines issued by the International Labour Organization,” he said in a statement.

Saravanan said the PDI MoU signed on April 1 in Jakarta was an improvement over the previous MoU.

The previous cost structure only outlined the components involved without setting the price rate, he said.

“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. This caused employers to have to pay more to get PDI services. This has been addressed in the new PDI MoU,” he said.

He said that through the MoU, employers were expected to save RM2,000 to RM3,000 on recruitment costs as there was no longer a quarantine requirement for PDIs, except for those who tested positive during the Covid-19 screening test conducted in the country.