Employer of Record (EOR) service in Malaysia.

5 Reasons for EOR Malaysia:

  • Our Employment Agreements are made for your specific needs and made under close surveillance by our legal team.

  • Our Employer of Record service includes professional payroll service and we can proudly say that our service quality is at the top of the industry. Our payroll accuracy is over 99.9%.

  • Our legal team is taking care of ongoing compliance for your employees.

  • Our services include a high-end HR software so that you can manage your remote workers.

  • We have built great relationships with the local authorities over the past decades. We have an outstanding reputation with them.


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Why use an Employer of Record (EOR) in Malaysia?

There are many reasons why working with an employer of record can make sense for your company:

  1. Access to affordable workforce

  2. Low Risk market entry without your own entity

  3. Bespoke employment contract provided by us

  4. Insurance and social security

  5. Transparent employment cost and Fees

Working with an Employer of Record (EOR) ensures legal compliance and reduces costs by handling payroll, taxes, and HR functions, allowing your business to expand internationally without the need to establish a local entity. This enables you to enter new markets quickly and focus on core business activities, driving growth and efficiency.

Must knows about Employer of Record (EOR) Services in Malaysia:


Annual Leave

The minimum number of annual leave days in Malaysia is 8 days. The common practice is 16 days. We recommend at least 16 days to keep your staff happy. 😇

Employment Contracts:

Employment Agreements in Malaysia can be either limited or open ended contracts. 📑

-> Reach out to get your bespoke draft


Termination:

  • Mutual Termination Possible ✅

  • 1 month notice period 🕰️

  • 1 month salary as severance pay 💰

Termination is legally possible for several reasons. We can consult you what to be aware of when terminating an employee.


Salary Payments

Salaries are usually paid monthly by the last day of the month 🗓️


Payroll Calculation (based on 10k MYR salary):

Employee Contributions:

Salary: 10,000 MYR

— Employee Provident Fund (EPF) 1,200 MYR

— Employment Insurance System (EIS): 10 MYR

— SOCSO 24.75 MYR

—Income Tax: 929.20 MYR

Net Salary: 7,836.05 MYR

Employer Contributions:

Salary: 10,000 MYR

Employee’s provided fund (EPF): 1,200 MYR (12%)

Employment Insurance System (EIS): 10 MYR (0.2% capped at 5k)

HRDF Levy: 100 MYR (1%)

Social Security Organisation SOCSO: 87.50 MYR (1.75% capped at 5k MYR)

Total Employment Cost = 11,379.50 MYR (+ EOR fees)

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