Malaysia
MALAYSIA

Employer of Record

EMPLOYER OF RECORD

Employ is a trusted provider of Employer of Record (EOR) solutions for businesses looking to expand in the Asia Pacific, Africa, Europe, and America, covering end-to-end employment services for the remote workforce. We specialize in Outsourced Payroll Services, Remote Staffing, and Visa Services. In addition, we bring a centralized approach to HR management, Payroll & Benefits, and Legal Compliance wherever your staff may be.

32.9 MILLION

total population in 2021

440 USD Billion

expected GDP in 2023

Malaysia’s successful diversification of its economy made it a major exporter of electrical appliances, spare parts, and components. Almost 40% of Malaysia’s jobs are connected to export industries with a highly-trained IT and manufacturing services workforce. The country’s openness to trade and investment has played a role in job creation and income growth. Malaysia’s economy has been growing at a rate of 5.4 percent on average since 2010. It aims to shift from an upper-middle-income to a high-income economy by 2024. It moves closer to becoming a high-income economy. Malaysia’s incremental growth will rely less on factor accumulation and more on increasing productivity to maintain potential growth. The country’s GDP is projected to trend around 380 USD Billion in 2022.

PUBLIC HOLIDAYS: 13

  • New Year’s Day – January 1
  • Federal Territory Day – February 1 (selected regions only)
  • Chinese New Year – varies
  • Awal Muharram – varies
  • Labor Day – May 1
  • Hari Raya Puasa – varies
  • Wesak Day – varies
  • King’s Birthday – June 5
  • Hari Raya Haji – varies
  • Merdeka Day – August 31
  • Mauludir Rasul – varies
  • Deepavali – varies
  • Christmas Day – December 25

 

SOCIAL SECURITY AND TAXATION

Employees’ Provident Fund (EPF)

  • Employer Contribution: 12%
  • Employee Contribution: 11%

Social Security Organisation (SOCSO)

  • Employer Contribution: MYR 69.05 (max)
  • Employee Contribution: MYR 19.75 (max)

Employment Insurance System (EIS)

  • 0.2% of employees’ wage
  • MYR 7.90 (max) 
  • Income Tax Rate: 0-30%

MINIMUM WAGE

1200 Malaysian Ringgit

WORK HOURS

40-48 hours per week

OVERTIME RATE

150% of the normal rate

PROBATIONARY PERIOD

3 to 12 months (based on contract)

ANNUAL LEAVE CREDITS

8-16 days (based on tenure)

MATERNITY LEAVE

60 days (paid)

PATERNITY LEAVE

2 days

SICK LEAVE

14-22 days (based on tenure)

BONUSES

not mandated by law (depends on the discretion of the employer)

*Info is not binding, may vary, and is provided only as an indication.

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