Employing in Malaysia
Growing your workforce in Malaysia doesn’t need to be complex. Speak with our team to see how TopSource EOR makes it easy to hire in new countries, without setting up entities or getting lost in local regulations.
More than an Employer of Record.
Employer of Record services are only one way that we help you accelerate your global growth goals. From talent advisory to entity management, we give you the tools you need to research, enter and expand into your key markets.
Market Selection Advisory
Compare available talent, compensation, additional costs and regulations across different countries
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Salary Benchmarking
Identify and prioritize markets for growth based on talent, cost & regulations
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Global Skills Analysis
Map skill availability by region to align talent strategies with business goals..
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Talent Acquisition
Find, hire & onboard the highly skilled team members you need in each locality.
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Talent Strategy Optimization
Optimize your talent strategy to enable your organization to achieve it’s global ambitions.
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Frequently asked questions
Yes. We manage EPF (Employees Provident Fund) retirement contributions, generally 12% to 13% of salary from the employer, along with SOCSO (social security) and EIS (employment insurance) contributions and PCB monthly income tax withholding. We also apply the correct provisions of Malaysia’s Employment Act, which was significantly expanded in 2022 to cover more categories of employees.
Beyond mandatory EPF and SOCSO, competitive Malaysian employers add private medical and hospitalization insurance, an annual bonus tied to performance (a widely expected practice even where not legally mandated), and flexible work arrangements. Malaysia’s multiracial and multilingual workforce also means benefits sensitive to religious observance, such as flexible leave around major festivals, are well regarded.
Notice periods are generally set by the employment contract, with the Employment Act providing default minimums (ranging roughly from four to eight weeks by tenure) where a contract is silent. Malaysia’s Industrial Relations Act also gives employees a route to claim unfair dismissal, and Malaysian labor tribunals lean toward requiring documented, just cause for termination.
An EOR can typically onboard within one to two weeks for EPF and SOCSO registration, compared with the several weeks needed to incorporate a Malaysian entity (such as a Sdn Bhd) and register with the Companies Commission and tax authorities.
Malaysia’s 2022 Employment Act expansion and its distinct EPF, SOCSO, and EIS contribution structure require ongoing local administration. An EOR manages that compliance and carries the liability, which is typically the more practical path for accessing Malaysia’s growing shared-services and tech talent pool.
Hire Anywhere with Our EOR Services
We help you legally employ and pay talent across 180+ countries—so you can scale faster.