Hire employees in
Malaysia, hassle-free
Hire employees in Malaysia, hassle-free
With Deel, your business can easily hire employees in Malaysia. No more worrying about local laws, complex tax systems, or managing international payroll. Deel takes care of everything in 150+ countries.
The average onboarding time frame in Malaysia is 5 days with Deel.
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Currency
Malaysian Ringgit (MYR)

Capital
Kuala Lumpur
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Official Language
Malay
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Payroll Cycle
Monthly
Hire employees in Malaysia. No entity needed.
Usually, to hire in Malaysia, your business needs an entity. That means a local office, an address registered as a subsidiary, and an account with a local bank. All of this, plus navigating regional benefits, payroll, tax, and HR laws, can take months.
Malaysia also treats contractors differently than full-time employees, so misclassifying a contractor could lead to fines. Deel lets you hire employees in Malaysia quickly, easily, and compliantly. We even automate tax document collection, payroll, benefits, and more.
All the necessary benefits for Malaysia
built right in
Deel allows you to provide localized benefits for employees in Malaysia within minutes. All in one manageable online dashboard.
- Employees Provident Fund Contribution
- Social Security
- Training Fund
- Unemployment Insurance
Our quickstart guide to hiring in Malaysia
Navigate the tabs below to learn everything you need to know about hiring an employee in Malaysia
Minimum Wage Requirements
Individual Income Tax
The individual income tax ranges from 0% to 30%. Income tax is calculated according to progressive rates. Multiple additional factors may impact overall rates such as the household status and the number of children.
Gross Annual Income | Tax Rate (%) |
---|---|
Up to MYR 5,000 | 0 |
Up to MYR 20,000 | 1% |
Up to MYR 35,000 | 3% |
Up to MYR 50,000 | 8% |
Up to MYR 70,000 | 11% |
Up to MYR 100,000 | 19% |
Up to MYR 250,000 | 24% |
Up to MYR 400,000 | 25% |
Up to MYR 600,000 | 25% |
Up to MYR 1,000,000 | 26% |
Up to MYR 2,000,000 | 28% |
Over 2,000,000 | 30% |
Employer Cost
- EPF - 12-13%
- SOCSO - 1.75-1.25%
- EIS - 0.2-0%
- HRDF Levy - 1%
Overtime Pay & Maximum Hours
For employees earning over MYR 2,000 per month, overtime is not required and must be agreed upon between the employer and employee. Employees can work a maximum of 104 hours of overtime a month. For all additional hours, employees are paid 150% of their hourly rate. Weekends employees are paid at 200% of their hourly rate and for public holidays employees are paid at 300% of their hourly rate.
Standard working hours are eight hours per day, 40 hours per week. The standard workweek is from Monday to Friday.
Maternity Leave
Paternity Leave
Parental Leave
Sick Leave
- Less than two years of employment - 14 days of sick leave
- Between two and five years of employment - 18 days of sick leave
- More than five years of employment - 22 days of sick leave
Termination Requirements
Terminations must respect complex rules and the rules of an employee’s employment country. The off-boarding is always handled by the Employer with the primary stakeholders. It may include ad-hoc fees as well as required or recommended steps on specific termination cases.
Terminations in Malaysia can be complex. There is no at-will termination in Malaysia for employers and termination must be done for just cause.
Compliant terminations include:
- Voluntarily by the employee
- By mutual agreement
- By the expiration of the contract
- Unilaterally by the employer based on:
- Probation period
- Objective grounds
- Disciplinary dismissal
- Performance due to unsuitability for the job
Notice Period
- If the length of service is less than two years, four weeks
- If the length of service is two years or more, but less than five years, six weeks notice
- If the length of service is five years or more, eight weeks notice
Severance for Employees
- 10 days of salary for service up to 2.
- 15 days of salary for service over 2 but less than 5 years.
- 20 days of salary for service over 5 years of service.
Paid Time Off
Public Holidays
Malaysia celebrates both 12 national and regional holidays based on the location of the employee.
- Prophet Muhammad's Birthday
- Hari Merdeka
- Chinese New Year
- Wesak Day
- The Yang di-Pertuan Agong's Birthday (King's Birthday)
- Hari Raya Puasa
- Hari Raya Qurban
- Deepavali
- Christmas
- Labour Day
- Awal Muharram
- Malaysia Day
Onboarding
Employment Contract Details
A contract must include:
- Position offered
- Duration of the contract
- Place of work
- Basic wage & pay date
- Working hours and days
- Other benefits (if any)
- Overtime (if any)
- Annual leave
- Termination clause
- Sick leave and hospitalization leave
- Rest day
- Probationary period
- Notice period
- Duties and responsibilities
- Termination clause
- Statutory deductions and income tax
Probation Period
Probation periods help an employer and the employee ensure they're a hiring match, allowing a company to quickly decide if it's a fit or the employee to see if the job aligns with their career goals.
Hiring in Malaysia, hassle-free
With Deel, your business can easily hire employees in Malaysia. No more worrying about local laws, complex tax systems, or managing
international payroll. Deel takes care of everything in 150+ countries.
599 USD
Management fee
14-15%
Estimate Employer Cost
*of employee salary
Want to learn the cost of hiring an employee in Malaysia?
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“Deel is an amazing platform! It's super intuitive and user friendly, plus it runs suuuuper smoothly!! It has great options for paying and withdrawing money, plus it helps you keep super organized with your spending. They also have great support and are super friendly with all the questions you might have :D I would definitely recommend it!!”
A contracting life-changer!
"This has by far the singular tool that made my contracting work amazing. It used to be that contract management and payouts was a nightmare — Deel makes everything so easy especially with its Transferwise integration. Everyone gets paid on time and kept happy. I also contacted their support a couple of times for some small questions and they’ve been nothing short of amazing. If you’re a contractor or someone who hires contractors then definitely give Deel a go."
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"The Deel platform has been super effective for my team and I and has enabled us to bring on workers globally. The platform allows us to onboard individuals seamlessly and with no issues at all. Highly recommend."
Terrific service
"Great service, amazing customer care, terrific platform, both for the company and for the contractors/employees. Saving everyone's time and money"
Deel is a game-changer for distributed teams
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