Under the current memorandum of understanding between Malaysia and Indonesia on the placement and protection of domestic workers signed two years ago, the minimum salary was set at RM1,500 in line with the existing national wage policy.

“We will have to adjust accordingly. Any changes to the provisions of the MoU will be discussed at the next joint working group (JWG) meeting comprising officials from the ministries involved,” Hermono told FMT.

He said the working group is expected to meet again by the end of the year.

Prime Minister Anwar Ibrahim announced in the 2025 budget yesterday the minimum wage will be raised to RM1,700 from February. He said the enforcement of the policy for employers with fewer than five workers would be delayed by six months, taking effect from Aug 1.

He also said the government plans to make it mandatory for all foreign workers to contribute to EPF, with the proposal to be implemented in phases.

“The government is committed to providing fair treatment to all workers, regardless of nationality, in line with international standards,” Anwar told the Dewan Rakyat.

Asked if the EPF contribution proposal should apply to Indonesian domestic workers, Hermono said they must comply with all regulations set by the country they are working in.

“If there are differences with the regulations in their own country, it must be settled through a bilateral mechanism. In the case of Indonesia and Malaysia, it is through the JWG,” he said.