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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
with Horizons in
180+ countries
Malaysia
In professional settings, the standard type of employment contracts offered in Malaysia are open-ended contracts. This type of contract is also referred to as an ‘unlimited’ or ‘permanent’ contract.
When hiring in Malaysia, employers should draft concise, written contracts that detail the terms and conditions of employment. The contract provisions should always be written in both English and Malay. When your business partners with Horizons’ Malaysia PEO, our in-country experts will assist you to draft letters of offer and employment contracts that comply with local employment legislation.
Fixed-term contracts, also known as ‘limited’ or ‘temporary’ contracts, are used in Malaysia but less frequently than open-ended contracts. Under a fixed-term contract, the terms of the working relationship are only valid for a specified period.
Keep in mind that, where a fixed-term contract has been renewed multiple times, the Malaysian courts may view the employee concerned to be a permanent staff member should they be dismissed.
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.
The primary difference between Open-Ended and Fixed-Term contracts is ‘permanence’ i.e. the potential length of the period of employment. Open-Ended contracts employ on a permanent basis, whereas fixed-term contracts employ for a specified period of time. This means that termination is needed to end an Open-Ended contract, whereas Fixed-Term contracts end on the date specified or upon the occurrence of a pre-specified event, such as the completion of a project.
There are certain terms and conditions that must be included in Malaysian employment agreements. For the most part, it’s possible to create employment contracts that align with your company’s objectives and existing policies. At Horizons, our in-country experts can advise on the particulars of any employment agreement to ensure compliance with Malaysian employment law.
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Headquarters – Singapore
71 Robinson Road #13-153
Singapore 068895
+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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