How Maid Agency Contracts Work in Malaysia
Everything you need to know — in plain language — before signing anything.
Hiring a foreign domestic helper through a maid agency in Malaysia involves more paperwork than most people expect. But once you understand how the contracts are structured, it becomes a lot less intimidating — and you'll know exactly what you're agreeing to.
What is a maid agency contract?
A maid agency contract is a formal written agreement between you (the employer) and the licensed maid agency. It spells out what the agency will do for you, what you'll pay, and what happens if things don't go as planned.
In Malaysia, maid agencies are regulated by the Ministry of Home Affairs (KDN) and are required to hold a valid license. The contract protects all parties involved and is your first line of defense if there's a dispute.
There are actually two separate contracts in a typical maid placement — one between you and the agency, and one between you and the maid herself. Both matter, and both should be read carefully before signing.
The three parties involved
Understanding who is responsible for what becomes much clearer when you know the three parties in every maid agency arrangement:
The Employer
That's you — the Malaysian household hiring the domestic helper. You are legally responsible for the maid once she is in your home.
The Maid Agency
The licensed intermediary who recruits, screens, processes documents, and places the maid. They act as the bridge between you and the source country.
The Foreign Maid
The domestic helper — typically from Indonesia, Philippines, Myanmar, Cambodia, or Bangladesh — who will work and reside in your home.
Source Country Agency
An overseas recruiter in the maid's home country that partners with the Malaysian agency. Their fees are separate and sometimes passed through to you.
Types of contracts
You'll typically encounter three types of agreements during the hiring process:
| Contract Type | Between | What it covers |
|---|---|---|
| Agency Service Agreement | Employer ↔ Agency | Fees, services provided, replacement policy, refund terms |
| Employment Contract | Employer ↔ Maid | Salary, duties, working hours, rest days, termination notice |
| Loan Agreement | Maid ↔ Agency (sometimes employer) | Repayment of recruitment fees advanced to the maid — affects her first few months' salary |
Some agencies include a loan agreement without clearly explaining it. Always ask: "Is there a loan attached to this placement?" If yes, understand how much and who deducts it from which salary.
What the contract covers
A well-written agency service agreement should include all of the following. If any of these are missing, ask for them in writing before signing:
- Full name, license number, and contact details of the agency
- A complete breakdown of all fees payable and when they are due
- The maid's nationality, age, and work experience (or the source country selection criteria)
- Estimated timeline from placement to maid's arrival
- Replacement policy — how many replacements, under what conditions, within what time period
- Refund or partial refund policy if placement fails
- Responsibilities of the agency (document processing, medical check, insurance, etc.)
- Responsibilities of the employer (accommodation, food, annual leave, etc.)
- How disputes will be handled
Agency fees explained
This is where most confusion — and disputes — arise. Malaysian maid agency fees are not standardized, and they vary widely depending on the maid's nationality, the agency's tier, and what services are bundled in.
Typical fee ranges (2024–2025)
| Source Country | Typical Total Package | Notes |
|---|---|---|
| Indonesia | RM 6,000 – RM 12,000 | Most common, includes levy & insurance |
| Philippines | RM 10,000 – RM 18,000 | Higher OEC & POLO fees apply |
| Myanmar | RM 8,000 – RM 13,000 | Growing in demand |
| Cambodia | RM 9,000 – RM 14,000 | Government-to-Government channel available |
| Bangladesh | RM 8,000 – RM 13,000 | Male domestic workers not included |
What's usually included in the package
- Recruitment and screening by source-country agency
- Pre-departure medical check and FOMEMA upon arrival
- Flight ticket to Malaysia
- Visa and work permit (PLKS) processing
- Annual foreign worker levy (first year, sometimes)
- Maid insurance (KKPA-compliant)
- Airport pickup and transit care
The annual government levy for a foreign domestic worker is currently RM 410 per year. This should be listed separately in your contract. Some agencies absorb it into the package; others bill it annually — know which applies to you.
Replacement & warranty clauses
One of the most important parts of any maid agency contract is the replacement guarantee. This clause determines what happens if the maid leaves, is unsuitable, falls ill, or cannot work.
"A good agency stands behind its placement. The replacement clause is where you see whether an agency is serious about its service — or just focused on closing the sale."
Standard replacement terms
- Most reputable agencies offer 1–2 free replacements within the first 6–12 months
- Replacement is usually free if the maid leaves, is medically unfit, or fails FOMEMA
- Some agencies extend to 24 months for an additional fee
Common exclusions
- Maid terminated by employer due to employer-side issues
- Maid's pregnancy (she will be repatriated)
- Employer changing job scope significantly after placement
- Cases where the employer did not follow agency's onboarding guidance
Always ask your agency: "What exactly voids the replacement warranty?" Get the full list in writing. A verbal assurance is not enforceable if there's a dispute later.
Your rights as an employer
Malaysian employers have specific rights that should be reflected in a legitimate agency contract. These include:
-
01Right to full disclosure of fees
The agency must provide an itemized breakdown of all charges. You are entitled to ask for this before signing — a refusal to provide it is a red flag.
-
02Right to select your maid
You have the right to review profiles and reject candidates before commitment. Legitimate agencies will provide multiple CVs, photos, and interview opportunities (video call for overseas candidates).
-
03Right to a cooling-off period
While not legally mandated for all contracts, many reputable agencies offer 24–72 hours to review a contract before the deposit is finalized.
-
04Right to file a complaint
If the agency breaches the contract, you can report to Jabatan Tenaga Kerja (JTK) or the Association of Employment Agencies Malaysia (PAPA).
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05Right to a copy of all documents
You are entitled to copies of the signed contract, the maid's passport, FOMEMA result, and insurance policy for your own records.
The maid's rights
Malaysia's employment laws — particularly under the Employment Act 1955 (amended 2022) — now explicitly cover foreign domestic workers in many areas. Understanding the maid's rights also protects you as an employer, because violating them can result in legal action.
| Right | What it means for you |
|---|---|
| One rest day per week | Must be in the employment contract. If she works on her rest day, she must be compensated |
| Minimum wage (discretionary) | Domestic helpers are technically exempt from national minimum wage, but many source countries have bilateral agreements specifying minimum salaries |
| Keep her own passport | Employers are not legally allowed to hold the maid's passport, though it is common. She has the right to retain her travel document |
| Access to medical care | You are responsible for her medical expenses. This should be covered by the mandatory KKPA maid insurance |
| Freedom from forced labor | You cannot physically restrain or threaten the maid. Violations may constitute trafficking and carry severe penalties |
| Annual leave & public holidays | While not legally compulsory for domestic workers, good practice (and many contracts) include these |
Termination & early exit
Sometimes the employment relationship doesn't work out. The contract should spell out how either party can exit — and what the financial consequences are.
Employer-initiated termination
If you wish to terminate the maid's employment, you must:
- Give written notice (typically 1 month, or salary in lieu)
- Pay any outstanding salary and overtime
- Notify the Immigration Department to cancel her work permit (PLKS)
- Arrange and pay for her repatriation if she is being sent home
Maid-initiated termination ("runaway" cases)
If the maid leaves without notice, she is considered an "absconder" under Malaysian immigration law. You must report this to the agency immediately — and to the police within 14 days — to protect yourself from liability. Your replacement clause may be triggered in this case.
Failing to report an absconding maid can expose you to fines and complications renewing your permit to hire in the future. Always report promptly and keep documentation.
Red flags to watch for
Not all agencies operate ethically. Here are the warning signs that should prompt you to walk away — or at minimum, ask very hard questions:
- No written contract — any agency that only does verbal agreements is breaking the law
- Unusually low fees — suspiciously cheap packages may involve debt bondage, illegal channels, or poor candidate screening
- Pressure to sign immediately — legitimate agencies give you time to review
- No license number displayed — always verify the agency's KDN license at ejawatan.imi.gov.my
- Vague replacement terms — "we'll sort it out" is not a replacement policy
- Fees demanded in full upfront — reputable agencies take a deposit and balance upon arrival
- No itemized fee breakdown — you have a right to know exactly what you're paying for
Check if the agency is a registered member of PAPA (Persatuan Agensi Pekerjaan & Peniagaan Malaysia) or MAMA (Malaysian Association of Maid Agencies). Both associations maintain directories and handle complaints from employers.
Quick summary
Here's the short version of everything covered in this guide:
- There are two main contracts — one with the agency, one with the maid. Both matter equally.
- Fees vary by nationality and package. Always get an itemized breakdown.
- The replacement clause is the most important section — read it twice.
- Your rights as an employer include full disclosure, candidate selection, and access to all documents.
- The maid has legal rights too — understand them to avoid unintentional violations.
- Always verify the agency's KDN license before signing anything.
Have questions before you sign?
Consider consulting with a licensed employment agency member of PAPA or MAMA before committing to any contract. When in doubt, ask for more time — a professional agency will always give it to you.