Multiplier Logo
Loading Animation Image

Malaysia Employment Guide

Your quick guide on talent and labor compliance norms in Malaysia


Kuala Lumpur


Malaysian Ringgit (MYR)


Malay (Official), English, Chinese

Payroll Frequency


GDP per Capita


Employer Tax

19.2% - 22.7%

Talent Overview

Malaysia’s ongoing economic growth is all due to its high labor productivity. The International Monetary Fund has considered Malaysia as the 4th largest economy in Southeast Asia. The manufacturing industry has been the greatest contributor to their success since the 1960s and continues to do so as the country is averaging at a 4.3% GDP growth rate.

Major economic hubs:

Kuala Lumpur, Georgetown and Johor Bahru

Skills in demand:

Programmer or Software Engineers, Information Technology (IT) Specialists, Data Scientists/ Data Analysts / Data Engineers. Computer Science – Cybersecurity, Digital Forensics, Blockchain

Malaysia Map

Local Universities

The top local universities in Malaysia are as follows:

Uni1 1

Universiti Malaya


Local: 1

World: 693

Uni2 9

Universiti Teknologi MARA


Local: 2

World: 890

Uni3 1

Universiti Sains Malaysia


Local: 3

World: 990

Uni4 1

Universiti Kebangsaan Malaysia


Local: 4

World: 1062


Universiti Teknologi Malaysia


Local: 5

World: 1081

Salary Data

Some common jobs in Malaysia and their corresponding monthly salary are listed below:

Job Title Average Monthly Salary (MYR) Average Monthly Salary (USD)
Marketing Manager 12,100 MYR 2,643 USD
Product Manager 9,600 MYR 2,097 USD
Sales Executive 8,670 MYR 1,894 USD
Developer 6,760  MYR 1,476 USD
UI/UX 4,740 MYR 1,035 USD
Accounting 4,550 MYR 994 USD
Malaysia Talent Source

Talent Sourcing Tips

Top Local Job Boards:

Indeed, Neuvoo,

Number of LinkedIn users:


Top Recruitment Agencies:

Monroe Consulting Group, Seekers Malaysia, Hays Malaysia

Employing in Malaysia

Knowing the labor laws in Malaysia is crucial when employers onboard workers from the country. Below are some items that should guide businesses when they take in Malaysian employees into their team. 

Employee Contract

There is no statutory language to be used in the Malaysian employment contracts, provided that both employers and employees understand the terms in the document. 

Probation Period

Newly hired Malaysian employees can be under probationary status for up to 6 months of employment. 

Public and Provincial Holidays

Date Name Type Details
1 Jan New Year’s Day State Holiday All except JHR, KDH, KTN, PLS, TRG
14 Jan Birthday of Yang di-Pertuan Besar State Holiday NSN
15 Jan Birthday of Yang di-Pertuan Besar observed State Holiday NSN
25 Jan Thaipusam State Holiday JHR, KDH, KUL, NSN, PJY, PNG, PRK, SGR
1 Feb Federal Territory Day Federal Territory Holiday KUL, LBN, PJY
7 Feb Isra and Mi’raj (Tentative Date) State Holiday KDH, NSN, PLS, TRG
10 Feb Lunar New Year’s Day Federal Public Holiday  
11 Feb Second Day of Lunar New Year Federal Public Holiday All except KTN, TRG
11 Feb Lunar New Year Holiday State Holiday Kelantan, Terengganu
4 Mar Anniversary of the Coronation of the Sultan of Terengganu State Holiday Terengganu
11 Mar First Day of Ramadan (Tentative Date) State Holiday JHR, KDH, MLK
23 Mar Birthday of the Sultan of Johor State Holiday Johor
27 Mar Nuzul Al-Quran State Holiday KTN, KUL, LBN, PHG, PJY, PLS, PNG, PRK, SGR, TRG
29 Mar Good Friday State Holiday Sabah, Sarawak
10 Apr Hari Raya Puasa (Tentative Date) Federal Public Holiday  
11 Apr Hari Raya Puasa Day 2 (Tentative Date) Federal Public Holiday  
15 Apr Declaration of Malacca as Historical City State Holiday Malacca
26 Apr Birthday of the Sultan of Terengganu State Holiday Terengganu
1 May Labour Day Federal Public Holiday  
22 May Pahang State Holiday State Holiday Pahang
30 May Harvest Festival State Holiday Labuan, Sabah
31 May Second Day of Harvest Festival State Holiday Labuan, Sabah
1 Jun Gawai Dayak State Holiday Sarawak
2 Jun Gawai Dayak Holiday State Holiday Sarawak
3 Jun The Yang di-Pertuan Agong’s Birthday Federal Public Holiday  
3 Jun Gawai Dayak Holiday observed State Holiday Sarawak
16 Jun Day of Arafat (Tentative Date) State Holiday Kelantan, Terengganu
16 Jun Sultan of Kedah’s Birthday State Holiday Kedah
17 Jun Hari Raya Haji (Tentative Date) Federal Public Holiday  
17 Jun Hari Raya Haji holiday (Tentative Date) Federal Public Holiday  
18 Jun Hari Raya Haji (Day 2) (Tentative Date) Common local holiday KDH, KTN, PLS, TRG
7 Jul George Town World Heritage City Day State Holiday Penang
8 Jul Muharram/New Year (Tentative Date) Federal Public Holiday  
13 Jul Penang Governor’s Birthday State Holiday Penang
17 Jul Birthday of the Raja of Perlis State Holiday Perlis
22 Jul Sarawak Independence Day State Holiday Sarawak
30 Jul Birthday of the Sultan of Pahang State Holiday Pahang
12 Aug Almarhum Sultan Iskandar Hol Day State Holiday Johor
24 Aug Birthday of the Governor of Malacca State Holiday Malacca
31 Aug Malaysia’s National Day Federal Public Holiday  
16 Sep The Prophet Muhammad’s Birthday (Tentative Date) Federal Public Holiday  
16 Sep Malaysia Day Federal Public Holiday  
5 Oct Birthday of the Governor of Sabah State Holiday Sabah
12 Oct Birthday of the Governor of Sarawak State Holiday Sarawak
1 Nov Birthday of the Sultan of Perak State Holiday Perak
11 Nov Birthday of the Sultan of Kelantan State Holiday Kelantan
12 Nov Birthday of the Sultan of Kelantan (Day 2) State Holiday Kelantan
11 Dec Birthday of the Sultan of Selangor State Holiday Selangor
24 Dec Christmas Eve State Holiday Sabah
25 Dec Christmas Day Federal Public Holiday  

Employee Leaves

Type of Leave Time Period Mandatory
Annual Leave 8 days  Yes
Sick Leave 14 days Yes
Maternity Leave 12 weeks Yes



Payroll 1

Payroll Cycle

Payroll in Malaysia is paid monthly. It is given within the first 7 days of the following month.

Payroll 2

Minimum Wage

Minimum wage in Malaysia varies from the Municipal councils from areas outside it. The former has a minimum wage of MYR 1,200.00 per month while the latter is MYR 1,100.00 per month. 

Payroll 3

Overtime Pay

Overtime pay is based on the day that the work is performed. Below are the rates:


13th Month Pay

In Malaysia, a 13th month pay is not mandatory. Although, it is customary to provide a 13th month pay at the end of the year. 

Employee Benefits

Employers in Malaysia may provide the following benefits to their employees: 

  • Medical insurance.
  • Life insurance.
  • Disability insurance.
  • Retirement contributions and pension plans.


Employer and Employee Payroll Tax

Employee Provident Fund (EPF):

Contributions Malaysian citizens and permanent residents (mandatory) Expatriates and foreign workers (without permanent resident status) (voluntary)
Rate of contribution of employee’s wages (minimum)
Employer Employee Employer Employee
Below age 60:
Income > MYR 5,000 12% 11% MYR 5 per person 11.0%
Income ≤ MYR 5,000 13%
Above age 60:
Income > MYR 5,000 Malaysian: 4.0%;
Permanent resident: 6.0%
Malaysian: 0%; Permanent resident: 5.5% MYR 5 per person 5.5%
Income ≤ MYR 5,000 Malaysian: 4.0%;
Permanent resident: 6.5%

Social Security Organisation (SOCSO):

Contribution to Employer Rate Employee Rate
Employment Injury Scheme (EIS) and Invalidity Scheme (IS) Maximum MYR 86.65 Maximum MYR 24.75
Employment Insurance System (EIS) 0.2% (Restricted to MYR 9.90) 0.2% (Restricted to MYR 9.90)

Employee Income Tax

Annual Taxable Income Tax on first amount Tax rate on the excess
5,000 to 20,000 MYR 0 1%
20,000 to 35,000 MYR 150 MYR 3%
35,000 to 50,000 MYR 600 MYR 8%
50,000 to 70,000 MYR 1,800 MYR 13%
70,000 to 100,000 MYR 4,400 MYR 21%
100,000 to 250,000 MYR 10,700 MYR 24%
250,000 to 400,000 MYR 46,700 MYR 24.5%
400,000 to 600,000 MYR 83,450 MYR 25%
600,000 to 1,000,000 MYR 133,450 MYR 26%
1,000,000 to 2,000,000 MYR 237,450 MYR 28%
Above 2,000,000 MYR 517,450 MYR 30%


Malaysia’s sales and services tax is projected to tread around by 10% in 2022.

Offboarding & Termination

Malaysia observes a  pro-employee system.  When terminating an employment contract, Employers must send out a notice with a just reason for dismissal. Employees will then have the opportunity to provide an explanation, challenge the employer’s decision or accept it.

Malaysian employees under the probationary period will have up to 30 days of notice period. On the other hand, Malaysian employees after probation will  have up to 3 months of probation period.  

Years of Service Amount of Pay (per year of employment)
Below or equal to 2 years 10 days of salary
2 years to 5 years 15 days of salary
Above 5years 20 days of salary


Visa and Immigration

Getting an employment visa in Malaysia includes acquiring a Malaysia Work Permit. There are 3 types of work permit base on how long the employee intends to stay in the country:

  • Employment Pass – issued from 1 to 5 years
  • Temporary Employment Pass – issued up to 2 years
  • Professional Visit Pass – issued for a year (12 months)
Malaysia Flag
Footer 24x5 New Img2x

Streamline payroll and compliance for your international workforce


Minimum Wage

Overtime Pay

Day of Overtime Rate
Extra hours worked on normal working day 150%
Rest days 200%
Public holidays 300%


Visa & Immigration