Employer of Record & Payroll Services

Employing in Malaysia

Employment regulations in Malaysia are spelled out across several government statutes such as:

Act A1651 - Employment (Amendment) Act 2022
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 4 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.

The Malaysian government has raised the minimum wage from RM 1,500 per month to RM 1,700 per month, effective Feb 1, 2025. This change will impact employers who hire workers on monthly, daily and hourly arrangements.

12 Public holidays

2025-01-29
2025-03-31
2025-04-01
2025-05-01
2025-05-12
2025-06-02
2025-06-07
2025-06-27
2025-08-31
2025-09-05
2025-09-16
2025-12-25

Chinese New Year's Day (Hari Tahun Baru Cina)
Hari Raya Puasa
Hari Raya Puasa (Hari Kedua)
Hari Pekerja
Hari Wesak
Hari Keputeraan Rasmi Seri Paduka Baginda Yang di-Pertuan Agong
Hari Raya Qurban
Awal Muharam (Maal Hijrah)
National Day (hari Kebangsaan)
Birth of the Prophet (Kelahiran Nabi)
Malaysia Day (Hari Malaysia)
Christmas Day (hari Krismas)

Competitive benefits package in Malaysia

Health Insurance

Dental Insurance

Vision Insurance

Mental health support

Pension or 401(K)

Life and Disability Insurance

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

Languages

Malay

Population size

32,730,000

Ease of doing business

Very easy

Payroll frequency

Monthly

VAT - standard rate

6%

Grow your team in Malaysia with Remote

Want to employ workers in Malaysia? Companies hiring in Malaysia are typically required to either own a local legal entity or work with a global employment platform like Remote that can legally provide employment services in the country.

Remote can employ team members in Malaysia and keep you compliant. Remote can hire, onboard, and pay your Malaysia team so you don't have to set up local HR services in the region. Remote also makes it easy to pay contractors in Malaysia. Sign up now to get started or talk to an expert for more details.

Risks of misclassification

Malaysia, like many other countries, treats self-employed individuals or contractors and full-time employees differently. Misclassification of contractors in Malaysia may lead to fines and penalties for the offending company.

Payroll

29

per employee/month

Powerful, transparent international payroll
Simple self-service platform
Personalized support from dedicated specialists
Adhere to local payroll regulations in every country
Integrated payroll, expense management, and HRIS solution

Contractor Management

29

per contractor/month

Only pay for contractors you actively work with
Work with international contractors
Create, edit, and sign tailored, localized contracts
Approve contractor invoices with one click or auto-pay
Transparent payments with complete visibility

Employer of Record

699 599