Hiring in Malaysia
A Quick Glimpse of
Hiring in Malaysia
Hiring in Malaysia
A Quick Glimpse of Hiring in Malaysia
MYR
Salary payment currency
English / Malay
Contract language
45
Working hours per week
MYR 1,500
Min. hourly salary
18.95% - 22.45%
Employer cost
11
Bank holidays per year
1 Jan - 31 Dec
Tax cycle
0%-30%
Employee tax
Hiring in Malaysia
Everything You Need to Know Before Making Your First Hire in Malaysia
Contracts & Agreements
Compensation & Benefits
Taxes & Costs
Leaves
Termination & Severance
Contracts & Agreements
Open-ended Contract
Fixed-term Contracts
Compensation & Benefits
Minimum Pay
Payout Cycle
Working Hours
Guaranteed Benefits
All employees in Malaysia are covered by Malaysia's
universal healthcare system, which is financed by
employee and employer taxes.
All employees in Malaysia are covered by Malaysia's universal healthcare system, which is financed by employee and employer taxes.
Every employee receives at least 8 vacation days
for every 12 months of work for a company.
Every employee receives at least 8 vacation days for every 12 months of work for a company.
Employees are granted 11 days
of annual leave every year.
While not mandatory, employers usually pay an
additional month's salary or the 13th month's
salary as an annual bonus in Malaysia.
While not mandatory, employers usually pay an additional month's salary or the 13th month's salary as an annual bonus in Malaysia.
Taxes & Costs
Tax for Employees
An individual employed in Malaysia is subject to tax on income arising from Malaysia, regardless of where the employment contract is signed or the remuneration is paid. The following are the income tax brackets in Malaysia.
| Taxable income band (MYR) | National income tax rate |
|---|---|
| Income Up to MYR 5,000 | 0% |
| MYR 5,001 to MYR 20,000 | 1% |
| MYR 20,001 to MYR 35,000 | 3% |
| MYR 35,001 to MYR 50,000 | 8% |
| MYR 50,001 to MYR 70,000 | 13% |
| MYR 70,001 to MYR 100,000 | 21% |
| MYR 100,001 to MYR 250,000 | 24% |
| MYR 250,001 to MYR 400,000 | 24.5% |
| MYR 400,001 to MYR 600,000 | 25% |
| MYR 600,001 to MYR 1,000,000 | 26% |
| MYR 1,000,001 to MYR 2,000,000 | 28% |
| Above MYR 2,000,000 | 30% |
Employer Cost
Employers must pay 12-13% of an employee’s monthly salary as contribution to the Employer Provident Fund (EPF). Additionally, employers may also be liable to pay social security (SOCSO), human resource development, and unemployment insurance (EIS).
Leaves
Every employee working in Malaysia is provided different types of leaves throughout the year. These include:
Annual Leave
- 8 days for every 12 months of work for an employment period < 2 years
- 12 days for every 12 months of work for an employment period of 2 – 5 years.
- 16 days for every 12 months of work for an employment period > 5 years
Sick Leave
- 14 days every year (for an employment period < 2 years)
- 18 days every year (for an employment period of 2 – 5 years)
- 22 days every year (for an employment period > 5 years
- Up to 60 days of sick leave if hospitalization is required.
Maternity & Paternity Leave
applicable laws. Similarly, employees are entitled to 7 days of paid paternity leave for each child
Termination & Severance
Termination
Severance Pay
- 10 days’ pay for each year (for < 2 years of employment)
- 15 days’ pay for each year (for 2 – 5 years of employment)
- 20 days’ pay for each year (for > 5 years of employment)
WHY CHOOSE EOR
Why choose an Employer
of Record (EOR) in Malaysia?
WHY CHOOSE EOR
Why choose an Employer of Record (EOR) in Malaysia?
An Employer Of Record (EOR) solution helps businesses enter new markets, hire skilled talent and expand internationally with ease, while avoiding contractor misclassification, mobilizing existing talent and outsourcing HR administration.
Why Trust
BGC Group
Why Choose BGC Group
Combining industry expertise, advanced technology and transparent pricing, BGC delivers reliable EOR solutions for businesses looking to hire and scale.
Industry
Expertise
Technology
Leverage
Cost-Effective
Pricing
Schedule
A Consultation
Schedule A Consultation
With every single one of our clients, we bring forth a deep passion for creative problem solving — which is what we deliver.