Worker accommodation can look perfectly acceptable during a quick visit and still have serious gaps. The certificate may have expired, actual occupancy may exceed the approved capacity, inspection records may be missing or the employment contract may not support the amount deducted for accommodation.

For employers, Act 446 compliance is therefore not a one-time application. It begins before workers move in and continues through daily management, maintenance and record keeping.

Scope note: Act 446 applies in Peninsular Malaysia and the Federal Territory of Labuan. Sabah and Sarawak have separate requirements.

What Act 446 means for employers in 2026

The Employees’ Minimum Standards of Housing, Accommodations and Amenities Act 1990—commonly called Act 446—is enforced by JTKSM. It regulates employee housing, accommodation and facilities, with Part IIIA covering accommodation for employees outside estates.

JTKSM’s current FAQ makes an important distinction: employers are not generally required to provide accommodation to every employee, but employers of foreign workers must provide accommodation under the applicable 2020 regulations.

This does not mean every employer must use a Centralised Labour Quarters provider. An employer may provide its own accommodation or use a third-party provider, as long as the premises are properly permitted, certified, managed and maintained.

The employer checklist

1. Certification comes before occupation

An ordinary house, shop lot, apartment, cabin or other building is not automatically suitable worker accommodation. The intended use must be allowed by the relevant local authority and the premises must obtain a Certificate for Accommodation before workers are placed there.

The employer or a centralised accommodation provider may apply online through the official Act 446 system. Use JTKSM’s current application checklist rather than relying on an old document list, because submission requirements can change.

After workers move in, the employer must notify JTKSM within 30 days. This responsibility remains with the employer even when the accommodation is operated by an external provider.

2. Capacity must match the actual layout

The 2020 regulations set different minimum sleeping-space and sanitation standards for dormitory and non-dormitory accommodation.

Each worker must have an appropriate bed, a mattress at least four inches thick, a pillow, blanket and lockable cupboard. The accommodation also needs water and electricity, rest and dining areas, a kitchen, fans, lighting, clothes-drying space, a first-aid kit and rubbish bins.

The simplest practical rule is this: when headcount changes, recheck the certified capacity before allocating another bed. A tidy hostel can still be overcrowded.

3. Compliance continues after the certificate is issued

Act 446 requires the employer or accommodation provider to appoint at least one person in charge. That person must visit and inspect the accommodation at least twice a month and keep a record of each inspection.

Good records should reflect what is happening on site, including room occupancy, cleaning, repairs, safety checks, worker complaints and corrective action. A checklist signed every month is not useful if broken facilities remain unresolved.

Employers should also ensure that accommodation for employees of opposite gender is separated, fire-safety measures and electrical wiring meet the relevant requirements, and a worker who is unwell receives appropriate medical assistance.

4. The 2026 accommodation deduction is RM150

From 1 March 2026, the maximum accommodation rent or charge is RM150 per worker per month. A deduction cannot be made if the accommodation does not have a valid JTKSM certificate.

The employment contract still matters. If the contract states RM100, the employer cannot simply increase the deduction to RM150 without obtaining the worker’s written agreement to amend the term. If the contract says accommodation is free, no deduction may be made unless the term is changed with the worker’s written agreement. Other facilities provided in the accommodation remain the employer’s responsibility and should not be charged separately.

Common mistakes to avoid

• Placing workers in the premises before the Certificate for Accommodation is issued.
• Assuming a tenancy agreement or local-authority permission replaces JTKSM certification.
• Treating certified capacity as flexible when the workforce grows.
• Forgetting the 30-day occupation notification.
• Outsourcing the hostel and assuming the employer no longer needs oversight.
• Keeping no clear record of inspections, repairs, complaints or worker allocation.
• Applying the new RM150 deduction without checking the certificate and employment contract.

Penalties should be stated accurately

Under Act 446, an employer that provides uncertified accommodation may be fined up to RM50,000. A centralised accommodation provider may face a fine of up to RM50,000, imprisonment of up to one year, or both. An employer that fails to notify JTKSM of occupation within 30 days may be fined up to RM10,000.

Different breaches may carry different penalties. Employers should be careful with online articles that describe every Act 446 offence as “RM50,000 per worker”; that is not the wording used for the Certificate for Accommodation offence in section 24D.

How BoldExcel supports employers

BoldExcel provides managed foreign worker accommodation and workplace transportation, helping employers coordinate worker placement, capacity, maintenance, daily transit and accommodation records. Current listed hostel locations include Simpang Ampat, Bukit Mertajam, Perai and Bukit Minyak, with other locations available on request.

Speak with BoldExcel about your worker numbers, work location, shift schedule and accommodation needs.

View BoldExcel’s dormitory and transportation service

Official sources checked on 13 August 2026:

JTKSM – Housing, Accommodation and Amenities · JTKSM – Updated Accommodation FAQ · Act 446 · 2020 Accommodation Regulations · Act 446 application system