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Malaysian Ringgit is the official currency ofMalaysia. Its currency symbol is MYR
The total employer cost generally ranges between 12.75% and 14.4% of the employee’s gross salary.
Malay and English are the official languages of Malaysia
The population of Argentina is 45.81 Million (based on World Bank numbers as of 2021).
Employees are paid monthly.
To start growing your team in Malaysia, you must establish a local entity- including an account with a local bank, a local office and an address registered as a subsidiary. This allows you to manage payroll, tax, benefits and compliance for your employees, but can take several months.
Emerald can hire and payroll your workers quickly and compliantly with their ‘ready to go’ entity. Make growing your team simple with Emerald as a global partner.
Emerald can hire and payroll your workers, quickly and compliantly with their ready to go entity. Make growing your team simple with Emerald as a global partner.
Hiring employees in Malaysia offers several advantages, including a highly skilled and multilingual workforce, competitive labour costs, and a strategic location in Southeast Asia, which is beneficial for companies looking to expand in the region. The country has a strong emphasis on education, producing a talent pool proficient in English and various technical skills. Additionally, Malaysia’s robust infrastructure and business-friendly environment make it an attractive destination for foreign investment. However, challenges include navigating complex employment laws and regulations, potential cultural differences that may impact workplace integration, and the need for employers to stay updated with frequent changes in labour policies. Moreover, while labour costs are competitive, they are gradually increasing, which could impact long-term cost planning for businesses.
Employers would benefit from hiring remote employees in Malaysia due to its strategic location and well-developed digital infrastructure, which facilitate effective remote work across time zones in Southeast Asia. The country offers a large, diverse, and highly educated talent pool, including professionals fluent in English and skilled in various technical and business disciplines. By tapping into Malaysia’s workforce, employers can access high-quality skills at competitive labour costs compared to Western markets. Additionally, Malaysia’s supportive business environment and favourable government policies towards technology and innovation make it easier for companies to manage remote teams. This setup allows businesses to capitalize on cost efficiencies and operational flexibility while leveraging Malaysia’s growing reputation as a hub for tech-savvy professionals.
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| Employee Provident Fund (EPF) Contribution: | 13% for employees earning MYR 5,000 or less per month; 12% for those earning more. |
| Social Security Organization (SOCSO) Contribution: | Ranges from approximately 0.2% to 1.2% depending on salary level. |
| Employment Insurance Scheme (EIS) Contribution: | 0.2% of the employee's salary. |
Annual Leave.
Sick Leave.
Public Holidays.
Maternity Leave.
Paternity Leave.
Severance Pay.
Employee Provident Fund (EPF).
Social Security Organization (SOCSO).
Employment Insurance Scheme (EIS).
Malaysia has a public healthcare system that is largely funded by the government and general taxation and this provides healthcare services at a largely subsidized rate for citizens and non-citizens, at a higher rate. Public hospitals and clinics offer a wide range of medical services including hospitalization and surgeries, preventive care and prescriptions. Employees who earn less than MYR 4,000 a month must be covered by their employers under The Social Security Organisation. Expatriate and foreign workers are not automatically covered by public healthcare so they typically have to get private health coverage.
Social security contributions are mandatory for employees and employers in Malaysia and it is managed by the Employees Provident Fund and the Social Security Organisation. The contributions provide financial security for retirement, disability benefits, work-related injuries and medical coverage. Employees contribute 11% of their monthly salary to the Employees Provident Funds and Employers contribute 12-13% of the employee’s monthly salary depending on their wage bracket. Employees contribute 0.5% of their salary to the Invalidity pension Scheme and employers contribute 1.75% for the Employment Injury Scheme and 1.25% for the Invalidity Pension Scheme. Finally, employees and employers contribute 0.2% each to the Employment Insurance System.
The standard period of maternity leave is a minimum of 98 consecutive days, starting no earlier than 30 days before the due date unless a healthcare professional deems the employee unfit to work.
If they have worked for the company for a year, male employees are entitled to 7 days of paternity leave, during which they should receive full pay.
In Malaysia, employees are entitled to 14 days of paid sick leave per year for employees who have served less than 2 years, 22 days for employees with 2 to 5 years of service, and 60 days for employees with more than 5 years of service.
As the legal employer, Emerald Technology requires the following employee documents to ensure complete compliance:
When an employer dismisses an employee it must be with just cause and they must give them notice. The notice period starts from the day after the employer notifies the employee of the termination. Notice must be given in accordance with the following schedule at a minimum:
| Notice Periods: | Typically, 1 month. |
If an employee is made redundant, they are entitled to a payment based on years of continuous service.
| Severance Pay: | Severance: In Malaysia, severance pay is determined by the terms in the employment contract and the Employment Act. For employees covered under the Employment Act, severance pay is typically calculated as follows: |
8 to 14 days dependent on length of service.
MYR 1,500 per month
48 hours is the standard working week. In Malaysia, overtime is paid at 150% the hourly rate for the first 4 hours and 2 times the hourly rate for any additional hours beyond that.
Monthly.
Not mandatory by law.
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