Remote’s guide to employing in

malaysia flag

Make employment in Malaysia easy. Let us handle payroll, benefits, taxes, compliance, and even stock options for your team in Malaysia, all in one easy-to-use platform.

  • Capital City

    Kuala Lumpur

  • Currency

    Malaysian ringgit (RM, MYR)

  • Languages


  • Population size


Services available in this country:
Employer of Record ProductContractor ManagementGlobal Payroll
The Kuala Lumpur skyline in Malaysia

Facts & Stats

Malaysia Map Illustration
  • Capital City

    Kuala Lumpur

  • Currency

    Malaysian ringgit (RM, MYR)

  • Languages


  • Population size


  • Ease of doing business

    Very easy

  • Cost of living index

    39.51 (2021)

  • Payroll frequency


  • VAT - standard rate


  • GDP - real growth rate

    4.3 (2019)

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.

Grow your team in Malaysia with Remote

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.

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

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.

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 6 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.

12 Public holidays

Saturday 10 February 20241Chinese New Year's Day (Tahun Baharu Cina)
Wednesday 10 April 20242Festival of Breaking the Fast (Hari Raya Puasa)
Thursday 11 April 20243Second Day of the Festival of Breaking the Fast (Hari Kedua)
Wednesday 1 May 20244Labour Day (Hari Pekerja)
Wednesday 22 May 20245Buddha Day (Hari Wesak)
Monday 3 June 20246Birth of the King (Hari Keputeraan Rasmi Seri Paduka Baginda Yang di-Pertuan Agong)
Monday 17 June 20247Hari Raya Qurban
Sunday 7 July 20248Awal Muharam (Maal Hijrah)
Saturday 31 August 20249National Day (Hari Kebangsaan)
Monday 16 September 202410Malaysia Day (Hari Malaysia)
Thursday 31 October 202411Hari Deepavali
Wednesday 25 December 202412Christmas Day (Hari Krismas)

Competitive benefits package in Malaysia

At Remote, we’re obsessed with helping you craft the best possible employee experience for your team. We are leading the way in practising “fair equity,” which means making sure employees everywhere have access to both the required and supplemental benefits they need to thrive (and that will allow you to attract the best local talent).

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:

  • Health Insurance

  • Dental Insurance

  • Vision Insurance

  • Mental Health Support

  • Pension or 401(K)

  • Life and Disability Insurance

Taxes in Malaysia

Learn how employment taxes and statutory fees affect your payroll and your employees’ paychecks in Malaysia.

  • 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)

Types of leave

Employees are entitled to paid time off in proportion to their tenure working with an employer’s organisation.

  • 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

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 offences 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

Fair Pricing in Malaysia

Employer of Record

Hire and pay your global team

Starting at USD 599/month

for annual plans

Top features

  • Satisfaction guaranteed

  • No deposits or hidden fees

  • Zero onboarding or offboarding fees

  • Compliant equity incentives support including withholding and reporting

  • Built-in security and compliance

  • Fast onboarding (average 2-3 days)

  • Flexible, localised benefits

Contractor Management

Compliantly onboard and pay contractors

USD 29

per contractor/month

Start free trial

Top features

  • Only pay for contractors you actively work with

  • Work with contractors in 200+ countries

  • Create, edit, and sign tailored, localised contracts

  • Approve contractor invoices with one click or auto-pay

  • Transparent payments with complete visibility

Global Payroll

Consolidate your multi-country payroll

USD 50

per employee/month

Top features

  • Reduce costs by centralising payroll management

  • Ensure local compliance for every country

  • Direct support from in-house local payroll experts

  • Accurate, on-time, compliant payroll to level-up your employee experience

  • Tax and labour authority reporting handled for you


Manage all of your employees in one place

Sign up

Top features

  • Guided onboarding and offboarding

  • Employee profile and document management

  • Time and attendance (time off and tracking)

  • Expense management and reimbursement

  • Employee self-serve on the platform and mobile app