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Malaysia

Global Employment Solutions & PEO in Malaysia

Omnipresent makes it fast and easy to employ remote talent in Malaysia. We take care of payroll, compliance, taxes, and admin so you can focus on growing your business.

Malaysia

Omnipresent Employment Rating

Capital City
Kuala Lumpur
Currency
Malaysian ringgit (RM, MYR)
Language
Malaysian
Population

How do Omnipresent Global Employment Solutions Work?

Omnipresent provides global employment solutions and professional employment organisation (PEO) services for companies looking to grow and build out a global team in Malaysia. Traditional methods of establishing global employment and subsidiaries in Malaysia typically take months and can incur heavy costs. Omnipresent's global employment solutions and PEO services is helping hundreds of organisations onboard new employees in Malaysia in a matter of days with full compliance of local labour laws. We use a tech-forward approach to streamline the process.

  • Your company conducts the hiring and candidate selection process in Malaysia.
  • Omnipresent hires the selected candidate through our local professional employment organisation in Malaysia.
  • We take care of ensuring your new employee is hired in compliance with local labour laws, payroll regulations, benefits and more -- all without needing to set up a subsidiary in Malaysia.
  • The individual is legally contracted by Omnipresent but assigned to work for your company and reports to a manager or team in your organisation as your full-time employee.

Curious to learn more?

Employer Costs in Malaysia

Employer costs include EPF, Social Security (SOCSO), and Employment Insurance. Use the OmniCalculator to estimate costs or contact us for further information.

Employee Income Taxes in Malaysia

The rate of personal taxation varies depending on the income tax bracket the individual belongs to. This ranges between 0% - 30%.

Employee Social Contributions in Malaysia

Employee contributions include SOCSO and EPF.

Working Hours in Malaysia

The typical work week in Malaysia consists of 48 hours per week. Employees who are not subject to the Malaysia Employment Act (EA) may freely negotiate hours. Overtime laws in Malaysia are complex and can depend on the specific circumstances and the employee. We are happy to discuss in more detail for a specific context.

Holidays & Vacation in Malaysia

Please note that the below information covers national holidays and should be used for informative purposes only and not as a guarantee for payroll purposes. While we strive to offer you accurate information, public holidays are subject to frequent changes and can be dependent on regional differences. Should you need more detailed information on public holidays, please consult the government pages of the state and/or the local municipality of your employee.

  • Saturday, Jan 01, 2022 - New Year's Day (Hari Tahun Baru)
  • Tuesday, Feb 01, 2022 - Chinese New Year (Tahun Baru Cina)
  • Wednesday, Feb 02, 2022 - Chinese New Year (Tahun Baru Cina)
  • Tuesday, Apr 19, 2022 - Day of Nuzul Al-Quran (Hari Nuzul Al-Quran)
  • Sunday, May 01, 2022 - Labour Day (Hari Pekerja)
  • Monday, May 02, 2022 - Labour Day (substitute day) (Hari Pekerja (substitute day))
  • Tuesday, May 03, 2022 - End of Ramadan (Eid al-Fitr) (Hari Raya Aidil Fitri)
  • Wednesday, May 04, 2022 - End of Ramadan (Eid al-Fitr) (Hari Raya Aidil Fitri)
  • Sunday, May 15, 2022 - Vesak Day (Vesak Day)
  • Monday, May 16, 2022 - Vesak Day (Vesak Day)
  • Monday, Jun 06, 2022 - Yang di-Pertuan Agong's Birthday (Hari Keputeraan Yang di-Pertuan Agong)
  • Sunday, Jul 10, 2022 - Feast of the Sacrifice (Eid al-Adha) (Hari Raya Haji)
  • Saturday, Jul 30, 2022 - Islamic New Year (Awal Muharram)
  • Wednesday, Aug 31, 2022 - Independence Day (Hari Kebangsaan)
  • Friday, Sep 16, 2022 - Malaysia Day (Hari Malaysia)
  • Sunday, Oct 09, 2022 - Birthday of Muhammad (Mawlid) (Hari Keputeraan Nabi Muhammad S.A.W.)
  • Monday, Oct 24, 2022 - Deepavali (Deepavali)
  • Sunday, Dec 25, 2022 - Christmas Day (Hari Krismas)
  • Monday, Dec 26, 2022 - Christmas Day (substitute day) (Hari Krismas (substitute day))

Sick Leave Entitlement in Malaysia

Employees subject to EA regulations are entitled to the following sick leave periods:

  • 14 days for employees with less than 2 years service

  • 18 days for employees with over 2 years but less than 5 years service

  • 22 days for employees with 5 years service or more 

  • 60 days in the aggregate of each calendar year if hospitalisation is necessary for the employee and certified by a medical practitioner.

Non-EA employees can freely negotiate sick leave entitlements with the relevant employer. 

Parental Leave in Malaysia

Maternity: Maternity leave regulations in Malaysia include 90 days of which 60 days are paid and 30 days are unpaid. Paternity / Parental: No statutory provision for paternity leave or parental leave.

Annual Leave Entitlement in Malaysia

Employees subject to EA regulations are entitled to the following vacation times: 

  • Eight working days for every 12 months of continuous service with the same employer, if employed for a period of fewer than two years.

  • 12 working days for every 12 months of continuous service with the same employer, if employed for two years but fewer than five years.

  • 16 working days for every 12 months of continuous service with the same employer, if employed for five years or more.

Non-EA employees may freely negotiate vacation times with the relevant employer.

Severance Pay Entitlement in Malaysia

EA Employees who has been employed for more than 1 year are entitled to the following minimum severance payments:

  • Less than 2 years: 10 days' wages for every year of employment under a continuous contract of service with the employer

  • 2-5 years: 15 days' wages for every year of employment under a continuous contract of service with the employer

  • 5 years or more: 20 days' wages for every year of employment under a continuous contract of service with the employer and pro-rata in respect of an incomplete year, calculated to the nearest month

Non-EA Employees have the entitlement to severance payments depending on the employment contract or employee handbook, if any.

Termination in Malaysia

Employees can be dismissed with just cause. The commonly recognized categories of just cause are retrenchment, misconduct or poor work performance. All employees (regardless of their wage and designation) can bring an unfair dismissal claim. 

When terminating a contract of employment, it is recommended that the proper procedure is followed. 

For example, in a case of termination on ground of poor performance, sufficient written warnings, time and guidance to improve performance should be given to the employee in order to reduce the likelihood of a successful unfair dismissal claim.

Estimate employment costs with OmniCalculator

Global Employment Cost Calculator

Get an estimate of the employment costs for hiring in Malaysia.

United Kingdom

GBP 60,000 annual salary

Base Salary
Employer's Costs (Estimate)
VAT
Average Monthly Employer Cost *

* These employer costs are subject to frequent updates, and can depend on a variety of employee variables. They are only a ballpark estimate, and the actual figure may be above or below the quoted amount based on a number of variables. These estimates represent a monthly average each year. In some cases, contribution maximums will lead to payments earlier in the year being larger, before being reduced once max is hit. If a 13th and 14th month are applicable, these have been pro-rated into the gross salaries.

Expertise at your fingertips

Book your free consultation with one of our experts to see how easy it can be to employ in .

Employ the Best Talent, Anywhere in the World

Grow Your Global Team

The benefits of growing a global team and finding the best talent anywhere in the world are endless. It's important to note that labour laws and regulations in Malaysia are strict with penalties for non-compliance. Let our team take care of the details such as payroll, benefits, compliance, taxes, and admin so you can focus on growing your business. We're here to help you every step of the way.

Our clients rate us over 4.7 out of 5.
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Source: Trustpilot and G2 reviews in November 2022