Hiring guide · APAC
How to hire in Malaysia
To hire in Malaysia you need a registered entity contributing to EPF, SOCSO and EIS, or an Employer of Record that holds those registrations. Employer contributions add roughly 13–15% of salary, driven by EPF at 12–13%, with monthly payroll.
- Currency
- MYR
- Payroll cycle
- Monthly
- Employer cost
- ~13–15%
- Notice
- 4–8 weeks by service
The talent market in Malaysia
Malaysia is a strong shared-services and regional-operations base: English-language, multilingual across Mandarin and Bahasa, and materially cheaper than Singapore an hour away. Kuala Lumpur and Penang carry the technology and electronics talent respectively.
The Employment Act now covers all employees regardless of wage level for most provisions, which raised the compliance floor on hours, leave and flexible-work requests for professional roles that were previously outside scope.
Salary benchmarks in Malaysia
Indicative annual gross base salary in MYR for common roles. Treat these as planning ranges — actual offers move with city, seniority, sector and equity mix, and we model a live benchmark before you go to offer.
| Role | Annual gross base |
|---|---|
| Software engineer (mid) | MYR 90,000 – 150,000 |
| Senior software engineer | MYR 150,000 – 240,000 |
| Account executive (SaaS) | MYR 110,000 – 200,000 incl. variable |
| Customer support specialist | MYR 42,000 – 70,000 |
Employment rules and payroll in Malaysia
The statutory framework any offer has to sit inside — hours, leave, notice and the contributions that turn salary into fully loaded cost.
Working week
45 hours maximum under the Employment Act
Probation
3–6 months, with shorter notice by contract
Notice period
4 to 8 weeks depending on length of service
Paid leave
8 days after one year, rising to 16 with service; 14–18 is market
Public holidays
11 gazetted days plus state holidays
Payroll cycle
Monthly, payable within seven days of period end
Employer contributions
EPF 12–13%, SOCSO 1.75%, EIS 0.2% and HRD Corp levy where applicable
Contractor, EOR employee or your own entity?
Three ways to engage someone in Malaysia. The right one depends on how permanent the role is, how much direction you give, and how much local risk you want to carry.
Contractor
Fastest to start and simplest to end. Suitable for genuinely independent, project-scoped work where the person controls how and when they deliver, invoices you, and works for other clients. No statutory benefits, no notice period, no severance.
Employee via EOR
The right structure for a full-time role with fixed hours, managerial direction and exclusivity. A licensed in-country partner is the legal employer, so the person gets a compliant contract, statutory benefits and local payroll — without you opening an entity.
Your own entity
Worth it once headcount, permanence and local revenue justify the incorporation, tax registration, statutory filings and local directorship. Most companies reach that point somewhere between 15 and 30 employees in a single country.
Misclassification risk in Malaysia
Malaysian industrial courts apply a control and integration test and treat security of tenure seriously. A reclassified worker is entitled to back EPF and SOCSO with penalties, and unfair-dismissal claims to the Industrial Court can result in reinstatement or up to 24 months' back wages.
Work permits and right to work
Foreign professionals need an Employment Pass sponsored by a locally registered entity, graded into categories by salary, with the highest category allowing longer validity and dependants. Processing typically takes one to two months, and some sectors require prior approval from the relevant regulator.
Hire in Malaysia without an entity
TalentStores orchestrates Employer of Record employment in Malaysia through licensed in-country partners, with cost modelled before you extend an offer.
Explore Employer of Record- Fully loaded cost modelled before offer
- Licensed partner matched, not assumed
- One contract, one consolidated bill
Hiring in Malaysia: frequently asked questions
Can we hire in Malaysia without a Sdn Bhd?
Yes. A Malaysian Employer of Record employs the person under its own registration, handles EPF, SOCSO, EIS and monthly tax deductions, and can sponsor an Employment Pass for eligible foreign hires without you incorporating a Sdn Bhd.
What does a Malaysian employee cost above salary?
Roughly 13–15%: EPF at 12% for higher earners or 13% below the wage threshold, SOCSO at about 1.75%, EIS at 0.2%, and the HRD Corp levy of 1% where the employer is registered with it.
Does the Employment Act cover professional salaried staff?
Yes, since the scope expanded to cover all employees for most provisions regardless of wage. Some entitlements such as overtime pay remain limited by a wage threshold, but hours, leave and flexible-work provisions now apply broadly.
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Get the Malaysia Hiring Cost Guide
A country brief covering fully loaded employment cost in MYR, salary benchmarks by role, statutory contributions, leave and notice rules, and a sample offer breakdown for Malaysia.