Choose EOR for easy hiring in Malaysia

An Employer of Record (EOR) solution lets you employ and manage workers efficiently in Malaysia by taking care of:

No more than US $300/employee/month

Leading enterprises across all industries rely on us

A quick glimpse of hiring in Malaysia


Salary payment currency

English / Malay

Contract language


Working hours per week

MYR 1,500

Min. hourly salary

18.95% - 22.45%

Employer cost


Bank holidays per year

1st Jan - 31st Dec

Tax cycle


Employee tax

Looking to employ staff in Malaysia hassle-free ?

Choose an Employer Of Record (EOR) at no more than US $300/employee/month

Everything you need to know before
making your first hire in Malaysia

Contracts & Agreements

Compensation & Benefits

Taxes & Costs

Termination & Severance

Contracts & Agreements

Employment contracts in Malaysia are subject to labor laws and regulations, and they must comply with the relevant legal requirements. Some of the different kinds of contracts are:

Open-ended Contract

An open-ended contract is the standard employment contract offered in Malaysia. This type of contract is for indefinite duration, and it is common for employees who are hired on a long-term basis.

Fixed-term Contracts

In Malaysia, fixed-term contracts, also known as 'limited' or 'temporary' contracts, are less common than open-ended contracts. Working relationships under a fixed-term contract are valid only for a specified duration. A fixed-term contract can be renewed multiple times.
With An EOR solution, your employees sign a legal contract with the Employer Of Record while they share a normal working relationship with you.


Out of all the available visas, the Employment Pass is usually suitable for hiring most foreign workers. The different kinds of work visas in Malaysia include:

Employment Pass

The Employment Pass (EP) is a work permit that enables an expatriate to take up employment with an organisation in Malaysia. The pass is subject to the contract of employment and is usually issued for up to 5 years.

Temporary Employment Pass

A Temporary Employment Pass for Malaysia is issued to semi-skilled or unskilled workers in certain approved sectors. This pass is usually issued for a period of 12 months and can be renewed on an yearly basis.

Professional Visit Pass

A Professional Visit Pass (PVP) is granted to foreign talents with acceptable professional qualifications or skills. They can enter the country and provide services or undergo practical training with a Malaysian company on behalf of an overseas company on a temporary basis, for up to 12 months.
This is not an exhaustive list of works visas - please get in touch with one of our experts to learn which visa your employee needs to get before beginning work in Malaysia.

Compensation & Benefits

Minimum Pay

The minimum wage in Malaysia is MYR 1,500 per month.

Payout Cycle

Employee salary is usually paid out on a monthly basis. Every employer must complete salary payments to employees within 7 days after the last day of any wage period.

Working Hours

Workweeks in Malaysia are generally 40 hours long with an eight-hour workday. For every six days that an employee works, he/she must receive one rest day.

Guaranteed Benefits

Ask us for a Salary Benchmark for your EOR worker.

Streamline all HR tasks with one service: Employer Of Record (EOR)

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
MYR 5,001 to MYR 20,000
MYR 20,001 to MYR 35,000
MYR 35,001 to MYR 50,000
MYR 50,001 to MYR 70,000
MYR 70,001 to MYR 100,000
MYR 100,001 to MYR 250,000
MYR 250,001 to MYR 400,000
MYR 400,001 to MYR 600,000
MYR 600,001 to MYR 1,000,000
MYR 1,000,001 to MYR 2,000,000
Above MYR 2,000,000

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).
Ask us for a Gross to Net simulation or a Total Employment Cost calculation for your EOR worker.


Every employee working in Malaysia is provided different types of leaves throughout the year. These include:

Annual Leave

Employees receive a paid annual leave of

Sick Leave

Employees are entitled to a sick leave of -

Maternity & Paternity Leave

Employees are entitled to 98 days of paid maternity leave for each child and employers are required to pay the minimum amount as per applicable laws. Similarly, employees are entitled to 7 days of paid paternity leave for each child
There may be other kinds of leaves that certain employees are entitles to. For a full list of leaves and public holidays that your new hire in Malaysia is entitled to, talk to one of our experts.

Termination & Severance


Employees can be terminated only for just cause, such as gross misconduct, negligence, or redundancy. There is no legally stipulated notice period. Depending on the length of the contract, a notice of 1 to 2 months is usually provided by either party to terminate the contract.

Severance Pay

The severance pay is mandatory if mentioned in the contract. It is usually -

Ready to expand your business across multiple countries in the APAC region?​

Why choose an Employer Of Record (EOR)
in Malaysia?

recruiting specialised roles

An Employer Of Record (EOR) solution is relevant for multiple use cases:

Why trust BGC as your Employer Of Record (EOR)?

Industry Expertise

Since 2005, BGC has an extensive experience and proven track record of earning the trust of numerous clients.

Technology Leverage

Streamline operations with advanced technology which result in quicker time to onboard and pay.

Cost-effective pricing

Transparent and affordable monthly pricing that allows you to scale your workforce without any hassles.

Talk to us and make hiring in APAC a breeze!

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Jarrod Reidy

Director - HR Outsourcing (APAC)