The Selangor menteri besar said the Human Resources Ministry should not reject the proposal just because it comes from an opposition-controlled state.
The money will be contributed to a trust which will be used for skills training for local youths and to discourage local employers from using foreign labour in the long run.
On Thursday, Human Resources Minister Datuk Dr S. Subramaniam said only the federal government could collect levies.
Khalid also hit out at Suara Rakyat Malaysia (Suaram), a non-governmental organisation, which claimed that the cost of the contribution would be passed on to the foreign workers.
"We are against the exploitation of foreign workers but we also have a responsibility towards the people of Selangor."
Khalid said the money collected would be used to offset the social cost of hosting foreign workers in the state.
Khalid was speaking after officiating the conclusion of a basic course for enforcement officers at the Local Government Training Centre in Jugra, Kuala Langat, yesterday.
