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SALARY PAYMENT IN Malaysian Ringgit (MYR, RM)
CONTRACT LANGUAGES Malay / English
PAYROLL TAX 13.22%
PAYROLL CYCLE Monthly
TIME TO HIRE 24 hours
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Hire and pay talents
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180+ countries
Malaysia
Although employment legislation prescribes for social security schemes such as SOCSO, which includes the Employment Injury Insurance Scheme/EIIS and the Invalidity Pension Scheme/IPS; the Malaysian government does not offer a national medical insurance program for employees – buying private medical and life insurance is a must.
Within company and individual employment agreements, most employers in Malaysia provide for certain employee benefits. Insurance companies such as AIA Malaysia Bhd offer employee benefits products.
Alternatively, as part of our global PEO/EoR services, Horizons brokers tailored private medical insurance packages through Horizons Health by SafetyWing®.
Provided for in the Employees Provident Fund Act (1991), Malaysia’s compulsory pension/retirement scheme for private sector employees is known as the Employee’s Provident Fund/EPF.
The EPF is funded entirely through contributions from employers and employees. Total employer contribution to the EPF is 13% (or 12% if the employees’ monthly salary is below RM5,000). The EPF provides defined contribution-type benefits to members and although it is mandatory for Malaysian nationals & permanent residents, it is voluntary for expatriate employees.
The Persons with Disabilities Act (2008) provides that individuals with disabilities have the right to access employment on an equal basis with persons without disabilities.
In Malaysia, the costs of living with a disability or injury that results from a workplace injury is covered by the Employment Injury Insurance Scheme/EIIS and the Invalidity Pension Scheme/IPS.
In Malaysia the Employment Insurance Scheme or EIS covers for unemployment protection & reemployment training.
The EIS is managed by SOCSO (Social Security Organisation) to help Malaysians cope with job loss and retrenchment. It provides cash allowance and other benefits such as job counseling, training and matching for up to six months. Employees are responsible for contributing to the scheme through payroll taxes.
Companies that employ 10 or more Malaysian employees are also required to register with the Human Resource Development Corporation. The HRD Corp collects a levy that funds upskilling and modernization programs.
Your business can easily hire employees in Malaysia without opening a local entity. We handle local employment law, complex tax regulations, and international payroll in 180+ countries worldwide. All you need to do is focus on your business.
Employers are required to make financial contributions to cover certain employee benefits such as the Employee Provident Fund/EPF. Note that the Malaysian government doesn’t offer a national medical insurance program for employees -buying private medical and life insurance is a must.
Horizons offer tailored private medical insurance packages through Horizons Health by SafetyWing®.
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71 Robinson Road #13-153
068895, Singapore
+65 3105 1170
Skalitzer Str. 85/86
10997, Berlin
+49 30 3119 9653
1700 S. Lamar Blvd Suite 338
Austin, Texas 78704
+1 (737) 265-6065
See more locations
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