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Employ in Malaysia with ease.
Remote makes employment in Malaysia easy. With our localized contracts, easy invoice management, and best-in-class compliance, you can grow your global team with confidence.
Remote-Owned Local Entity
We own our own entity in the countries where we operate to shield your company from risk and provide you and your employees with the signature Remote experience.
Capital city
Kuala Lumpur
Currency
Malaysian ringgit
(RM, MYR)Languages spoken
Malay
Services available:
Facts & Stats
Malaysia is a tourism hotspot with rich cultural diversity, and an established economic superpower among the ASEAN countries.
For over half a century, the Malaysian economy has experienced significant economic growth, driven by gains in the mining, tourism, commerce, pharmaceuticals, and manufacturing industries in particular. Kuala Lumpur is now home to a burgeoning tech sector with a strong base of digital talent and highly skilled services professionals.
This Southeast Asian nation is a prime destination for employers looking for quality team members, and many businesses establish an Asian hub in the city affectionately know as KL.
Capital city
Kuala Lumpur
Currency
Malaysian ringgit
(RM, MYR)Languages spoken
Malay
Population size
32,730,000 (est. 2020)
Ease of doing business
Very easy
Cost of living index
39.51 (2021)
Payroll frequency
Monthly
VAT - standard rate
6%
GDP - real growth rate
4.3 (2019)
Grow your team in Malaysia with Remote
Looking to employ workers in Malaysia? Companies hiring in Malaysia must either own a legal entity in the country or work with a global employment solutions provider, usually one that provides employer of record services.
Remote can employ your team in Malaysia on your behalf through our local legal entity in the country and handle payroll, benefits, taxes, and compliance for your Malaysia team. You can also pay contractors now in Malaysia with Remote.
Employing in Malaysia
Employment regulations in Malaysia are spelled out across several government statutes such as:
- The Employment Act of 1955
- The Industrial Relations Act of 1967
- Trade Unions Act of 1959
- Employees Provident Fund Act of 1991
- Employees’ Social Security Act of 1969
- Occupational Safety and Health Act of 1994, etc.
Put together, these regulations define the protections and rights applicable to Malaysia’s workforce of 16 million. Employees in Malaysia enjoy protections against discrimination based on age, religion, gender expression, and race.
Common questions that could come up during the hiring process include the minimum wage, overtime rates, and guaranteed paid time off. Remote can help you offer a complete, competitive, and compliant benefits package to your employees in Malaysia.
Onboarding Time
We can help you get a new employee started in Malaysia fast. The minimum onboarding time we need is only 7 working days.
Our team ensures your employees are onboarded and paid as quickly as possible while keeping your business compliant with all local employment legislation. The minimum onboarding time begins after the employee submits all required information onto the Remote platform. The onboarding timeline is also dependent upon registration with local authorities.
For all non-nationals of the country of employment, the Right to Work assessment (if applicable) will add three extra days to the total time to onboard. There may be extra time required if we need to follow-up on the right to work assessment.
Please note, payroll cut-off dates can impact the actual first day of employment. Remote has a payroll cut-off date of the 10th of the month unless otherwise specified.
Competitive benefits package in Malaysia
At Remote, we’re obsessed with helping you craft the best possible employee experience for your team. We are leading the way in practicing “fair equity,” which means making sure employees everywhere have access to both the required and supplemental benefits they need to thrive (and that will allow you to attract the best local talent).
Our benefits packages in Malaysia are tailored to fulfill the local needs of your employees. Typically, our packages contain some or all of the following benefits:
- Health Insurance
- Dental Insurance
- Vision Insurance
- Mental Health Support
- Pension or 401(K)
- Life and Disability Insurance
Calculate the cost to hire an employee
in Malaysia
Taxes in Malaysia
Learn how employment taxes and statutory fees affect your payroll and your employees’ paychecks in Malaysia.
Employer taxes
12 - 13%: Provident Fund (for employees up to the age of 60)
4 - 6.5%: Provident Fund (for employees over the age of 60)
1.75%: Social Security (SOCSO)
0.20%: Employment Insurance (EIS)
1%: Human Resource Development Fund (for over 10 employees)
Employee taxes
9%: Provident Fund (employees up to the age of 60)
0.00 - 5.5%: Provident Fund (employees over the age of 60)
0.5%: Social Security (SOCSO)
0.20%: Employment Insurance (EIS)
Personal income tax rates (all in MYR - Malaysian Ringgit)
0%: Up to 5,000
1%: 5,000 –20,000
3%: 20,000 – 35,000
8%: 35,000 - 50,000
13.00%: 50,000 - 70,000
21.00%: 70,000 - 100,000
24.00%: 100,000 - 250,000
24.50%: 250,000 - 400,000
25.00%: 400,000 - 600,000
26.00%: 600,000 - 1,000,000
28.00%: 1,000,000 - 2,000,000
30.00%: 2,000,000 and over
Types of leave
Paid Time Off
Employees are entitled to paid time off in proportion to their tenure working with an employer’s organization.
- Up to two years of employment: 8 days off per year
- 2 - 5 years: 12 days off per year
- 5+ years: 16 days off per year
Public Holidays
There are six obligatory public holidays and 10 optional public holidays, and employers are expected to observe at least half of the latter.
Sick Leave
Employees accrue sick leave according to their tenure with an employer, and paidsick leave can last up to 22 days annually.
- Up to two years of employment: 14 days per year
- 2 - 5 years: 18 days per year
- 5+ years: 22 days per year
Employees are entitled to a maximum of 60 paid sick days if they are hospitalized, inclusive of the standard sick leave entitlement mentioned above.
Maternity Leave
Female employees are entitled to 60 days of paid maternity leave, although employers can opt to extend the length of the maternity leave with no additional pay (i.e., for the extra 30 days).
Paternity Leave
There’s no statutory paternity leave for private employees under Malaysian law, but government employees get anywhere from 7-14 days of paternity leave.
Bereavement Leave
1 - 3 days consecutive working days off as compassionate leave in the event of the death of an immediate family member.
Adoption Leave
Adoptive parents are entitled to 15 days of leave, from the day their child is handed over to their legal custody.
Employment termination
Termination process
Employee contracts can be terminated if a just cause is established, such as dishonesty, negligence, fraud, or any other work-related offenses and employees reserve the right to dispute their dismissal as unfair.
Notice period
There is no stipulated notice period required under Malaysian employment law.
Severance pay
Employees who’re dismissed unfairly (i.e., for reasons not related to their performance or conduct) are entitled to severance packages equivalent to their tenure working with an employer.
- Up to two years of employment: 10 days pay for each year of service
- 2 - 5 years: 15 days pay for each year of service
- 5+ years: 20 days pay for each year of service
