EOR Malaysia
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:
- HR Administration
- Payroll
- Compliance
Starting at US $300/employee/month
Leading enterprises across all industries rely on us
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
Looking to employ staff in Malaysia hassle-free ?
Choose an Employer Of Record (EOR) starting at US $300/employee/month
Everything you need to know before
making your first hire in Malaysia
Hire and manage your workforce anywhere in APAC
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.
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
- 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.
- 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.
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 |
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).
Ask us for a Gross to Net simulation or a Total Employment Cost calculation for your EOR worker.
Leaves
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
- 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
Employees are entitled to a sick leave of -
- 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
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
Termination
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 -
- 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)
Ready to expand your business across multiple countries in the APAC region?
Why choose an Employer Of Record (EOR)
in Malaysia?
An Employer Of Record (EOR) solution is relevant for multiple use cases:
- Enter new markets quickly & expand internationally with ease.
- Hire skilled talent in a foreign location.
- Avoid contractor misclassification & convert contractors to employees.
- Mobilize existing talent for secondment or remote opportunity.
- Focus on core business activities while you outsource HR administration.
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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