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Talent Wiki - Malaysia

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%

Your quick guide on talent and labor compliance norms in Malaysia

Talent Wiki - Malaysia


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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

Local Universities

The top local universities in Malaysia are as follows:

Universiti Malaya


Local: 1

World: 677

Universiti Teknologi MARA


Local: 2

World: 762

Universiti Sains Malaysia


Local: 3

World: 838

Universiti Kebangsaan Malaysia


Local: 4

World: 961

Universiti Teknologi Malaysia


Local: 5

World: 967

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 6,180 MYR 1,413 USD
Product Manager 5,090 MYR 1,163 USD
Sales Executive 4,250 MYR 971 USD
Developer 2,570  MYR 587 USD
UI/UX 2,420 MYR 553 USD
Accounting 2,280 MYR 521 USD

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 Holiday Type
1 Jan New Year Public Federal Holiday
22 Jan Chinese New year Public Federal Holiday
23 Jan Chinese New Year Public Federal Holiday
24 Jan Chinese New Year (observed) Public Federal Holiday
8 Apr Nuzul Al-Quran Public Federal Holiday
22 Apr Hari Raya Aidilfitri Public Federal Holiday
23 Apr Hari Raya Aidilfitri Public Federal Holiday
24 Apr Hari Raya Aidilfitri Public Federal Holiday
1 May Labour day Public Federal Holiday
4 May Wesak day Public Federal Holiday
5 Jun Agong’s Birthday Public Federal Holiday
29 Jun Hari Raya Haji Public Federal Holiday
19 Jul Awal Muharram Public Federal Holiday
31 Aug Merdeka Public Federal Holiday
16 Sep Malaysia Day Public Federal Holiday
28 Sep Prophet Muhammad’s Birthday Public Federal Holiday
25 Dec Christmas day Public Federal 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 Cycle

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

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. 

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)

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Minimum Wage

Overtime Pay

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


Visa & Immigration