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Hire employees and contractors in Malaysia

Outstaffer’s guide to employing in Malaysia.
Malaysia employee facts

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)
Official Languages
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)

Tech talent

Tech Talent in Malaysia

Malaysia is rapidly gaining recognition as a growing hub for tech talent in Southeast Asia. The country boasts a burgeoning community of skilled software developers, engineers, and IT professionals. Malaysian universities are producing graduates with strong technical expertise, and cities like Kuala Lumpur and Penang are witnessing a surge in tech startups and innovation hubs. Malaysia's strategic location, supportive government policies, and a lower cost of living compared to some neighboring countries make it an attractive destination for tech companies and entrepreneurs. Malaysian tech talent is known for its versatility, innovation, and ability to work on a global scale, contributing significantly to the country's emergence as a prominent player in the regional and global tech industry.

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Top Skills

What’s a Rich Text element?

The rich text element allows you to create and format headings, paragraphs, blockquotes, images, and video all in one place instead of having to add and format them individually. Just double-click and easily create content.

Static and dynamic content editing

A rich text element can be used with static or dynamic content. For static content, just drop it into any page and begin editing. For dynamic content, add a rich text field to any collection and then connect a rich text element to that field in the settings panel. Voila!

How to customize formatting for each rich text

Headings, paragraphs, blockquotes, figures, images, and figure captions can all be styled after a class is added to the rich text element using the "When inside of" nested selector system.

Top Industries

What’s a Rich Text element?

The rich text element allows you to create and format headings, paragraphs, blockquotes, images, and video all in one place instead of having to add and format them individually. Just double-click and easily create content.

Static and dynamic content editing

A rich text element can be used with static or dynamic content. For static content, just drop it into any page and begin editing. For dynamic content, add a rich text field to any collection and then connect a rich text element to that field in the settings panel. Voila!

How to customize formatting for each rich text

Headings, paragraphs, blockquotes, figures, images, and figure captions can all be styled after a class is added to the rich text element using the "When inside of" nested selector system.

Average Market Salary

What’s a Rich Text element?

The rich text element allows you to create and format headings, paragraphs, blockquotes, images, and video all in one place instead of having to add and format them individually. Just double-click and easily create content.

Static and dynamic content editing

A rich text element can be used with static or dynamic content. For static content, just drop it into any page and begin editing. For dynamic content, add a rich text field to any collection and then connect a rich text element to that field in the settings panel. Voila!

How to customize formatting for each rich text

Headings, paragraphs, blockquotes, figures, images, and figure captions can all be styled after a class is added to the rich text element using the "When inside of" nested selector system.

Diversity

What’s a Rich Text element?

The rich text element allows you to create and format headings, paragraphs, blockquotes, images, and video all in one place instead of having to add and format them individually. Just double-click and easily create content.

Static and dynamic content editing

A rich text element can be used with static or dynamic content. For static content, just drop it into any page and begin editing. For dynamic content, add a rich text field to any collection and then connect a rich text element to that field in the settings panel. Voila!

How to customize formatting for each rich text

Headings, paragraphs, blockquotes, figures, images, and figure captions can all be styled after a class is added to the rich text element using the "When inside of" nested selector system.

Years of Experience

What’s a Rich Text element?

The rich text element allows you to create and format headings, paragraphs, blockquotes, images, and video all in one place instead of having to add and format them individually. Just double-click and easily create content.

Static and dynamic content editing

A rich text element can be used with static or dynamic content. For static content, just drop it into any page and begin editing. For dynamic content, add a rich text field to any collection and then connect a rich text element to that field in the settings panel. Voila!

How to customize formatting for each rich text

Headings, paragraphs, blockquotes, figures, images, and figure captions can all be styled after a class is added to the rich text element using the "When inside of" nested selector system.

Years in Current Company

What’s a Rich Text element?

The rich text element allows you to create and format headings, paragraphs, blockquotes, images, and video all in one place instead of having to add and format them individually. Just double-click and easily create content.

Static and dynamic content editing

A rich text element can be used with static or dynamic content. For static content, just drop it into any page and begin editing. For dynamic content, add a rich text field to any collection and then connect a rich text element to that field in the settings panel. Voila!

How to customize formatting for each rich text

Headings, paragraphs, blockquotes, figures, images, and figure captions can all be styled after a class is added to the rich text element using the "When inside of" nested selector system.

hire from Malaysia

Grow your team in Malaysia with Outstaffer

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.

Outstaffer can employ your team in India on your behalf through our local legal entity in the country and handle payroll, benefits, taxes, and compliance for your India team. You can also pay contractors now in India with Outstaffer.

#hire from Malaysia

Grow your team in Malaysia with Outstaffer

Looking to employ workers in Australia? Companies hiring in Australia 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.

Outstaffer makes it easy for companies of all sizes to employ workers in Australia using our employer of record solution. We can help employ your Australian team using our local Australian entity, as well as handle your payroll, benefits, taxes, and local legal compliance.

Public holidays

Below are national public holidays applicable for all regions in this country

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Jan 1

New Year's Day

Jun 7

Yang di-Pertuan Agong's birthday

Oct 19

Prophet's Birthday

Feb 12-13

Lunar New Year

Jul 20

Eid al-Adha

Nov 4

Diwali

Mar 10-11

Prophet's Ascension

Aug 9-10

Islamic New Year

Dec 25

Christmas Day

May 13-14

Eid al-Fitr

Aug 31

Independence Day

May 26

Vesak

Sep 16

Malaysia Day

Minimum Wage

The Malaysian government reviews the national minimum wage every 2 years. In February of 2020, Malaysia’s national minimum wage was set at RM1,200 per month for urban districts and RM1,100 for rural districts. In May of 2022, the national minimum wage was increased by 25 percent to RM1,500 for businesses operating in the private sector with five employees or more.


Overtime Pay

The Malaysian government reviews the national minimum wage every 2 years. In February of 2020, Malaysia’s national minimum wage was set at RM1,200 per month for urban districts and RM1,100 for rural districts. In May of 2022, the national minimum wage was increased by 25 percent to RM1,500 for businesses operating in the private sector with five employees or more.


Payroll Cycle

All employee payments are made bi-monthly by Outstaffer.com on your behalf with absolutely no margins or markups.

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 Outstaffer 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. We have a payroll cut-off date of the 10th of the month unless otherwise specified.

13th Month Salary

attract & retain talent

Competitive benefits package
in Malaysia

Outstaffer supports our clients by offering competitive benefits packages that will help you attract and retain the best talent across the globe! Our benefits specialists have done the research on norms and requirements in each local market and have crafted packages that will allow your employees to thrive, no matter what country they live in.

Our benefits packages in Malaysia are tailored to fulfil the local needs of your employees. Typically, our packages contain some or all of the following benefits:

Supplemental screening & vaccine insurance
Supplemental maternity insurance
Employee engagement funds
Flexible work schedule
Additional paid holidays
Supplementary vision insurance
Supplemental dental insurance
Private health insurance
Learn More About Benefit Packages
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Taxes in the 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

    Leave

    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.


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    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

    Probation periods
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