CNI News
24 October 2023
The Ministry of Labor has requested an opinion from the Myanmar Overseas Employment Agencies Federation (MOEAF) to increase the license insurance fee by three times from overseas employment agencies, the agencies told CNI News.
The license insurance rates that will be increasingly collected are 1,000 lakh kyats from 250 lakh kyats for overseas employment agencies and 200 lakh kyats from 50 lakh kyats for overseas employment agencies (Thailand) reportedly.
Because the amount that will be collected was too much, there will be negotiation between the Ministry of Labor and the MOEAF, U Win Myint, managing director of Lucky Overseas Employment Agency told CNI News.
" The ministry has sent a letter to the MOEAF relating to the license insurance fee. MOEAF will hold a meeting and negotiate for the sake of its members. It depends on the decisions by the ministry and members. The members will pay as able as they can. The request that asks the members to pay within a period will be kind of. It will be a rate that both sides will accept. All is not doing very well in the economy for the time being and there is almost no demand at the moment. So many licenses have been granted, so there have been many competitors." said U Win Myint.
Those who are waiting in line in front of the Directorate of Labor
the rates of MOEAF that reported back to the ministry were 400 lakh kyats for overseas employment agencies and 100 lakh kyats for thai license, said an agency.
To raise the license fee was decided at the Overseas Employment Supervisory Committee Meeting held in July and at the MOEAF meeting held in September reportedly.
Because not every agency was okay, some of agencies would not convenient to pay the amount that the ministry has raised, agencies pointed out. Moreover, because there are unscrupulous agencies, they could collect more service charge by reason of rising license fee, Ko Thar Gyi helping migrant workers told CNI News.
" By reason of raising to 1,000 lakh kyats from 250 lakh kyats for license fee, some agencies can exploit Myanmar migrant workers. There are many agencies that don't take responsibility and accountability. We have to watch whether some agencies will raise their service charges or not. Many unscrupulous agencies are collecting 14 to 20 lakh kyats for service charges even though three lakh has been designated. By reason of raising license insurance fee, some agencies probably will raise their service charges from ignorant villagers who will go abroad for work. At a time when you can't get a job easily, raising service charges is not suitable." he said,
There were over 300 licensed overseas employment agencies in 2021 in Myanmar and but at present, nearly 470 licensed agencies.
