EOR in Malaysia
Employer of Record in Malaysia.
Employ talent in Malaysia without setting up a local entity.
- Fast and compliant employee onboarding
- Payroll, tax and social security in Malaysia
- Transparent monthly EOR pricing
- Work-permit support where a permit is required
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Employment in Malaysia
Employ in Malaysia without establishing a local entity
The EOR pricing model in Malaysia is typically based on a transparent monthly fee per employee. This fee generally covers employment contracts, payroll administration, statutory filings, tax withholding, onboarding, HR administration, employee support, and ongoing compliance management.
Compared with establishing a Malaysian legal entity, an EOR significantly reduces setup costs, administrative burdens, and compliance risks. Companies avoid incorporation expenses, local payroll infrastructure, ongoing corporate administration, and complex regulatory obligations while maintaining flexibility to scale teams as business needs evolve.
At a glance
Malaysia at a glance
Country essentials and economic context.
Country profile
Economic indicators
Employment
Employment essentials
Choose a topic to explore local employment requirements.
Progressive tax rates may apply for eligible SMEs.
Notice and severance follow the labour code and the contract. Gini calculates the balance at offboarding.
Included
What’s included in your EOR service?
Employment administration and support for your team in Malaysia.
Employment contracts & onboarding
Locally compliant employment documents, onboarding and statutory setup in Malaysia.
Monthly payroll
Gross-to-net payroll, payslips and monthly payroll reporting in Malaysia.
Social security administration
Employee registration and ongoing social security contributions in Malaysia.
Payroll tax administration
Processing of applicable payroll taxes and statutory filings in Malaysia.
Leave & benefits administration
Administration of statutory leave, agreed benefits and expenses in Malaysia.
Employee records
Employment records and HR documentation through the employee lifecycle in Malaysia.
Local HR support
Day-to-day employment support for employees and international employers in Malaysia.
Offboarding & final settlement
Termination documents, final payroll and statutory settlement in Malaysia.
EOR vs Local Entity in Malaysia
| Employer EPF Contribution | 12%–13%* |
|---|---|
| Employee EPF Contribution | 11% |
| SOCSO Contribution | Variable Rates** |
| Employment Insurance System (EIS) | 0.2% Employer / 0.2% Employee |
| Monthly Tax Deduction (PCB) | Progressive Rates |
| Paid Annual & Sick Leave | Applicable |
| Notice Period | 4 weeks |
| Onboarding via EOR | 3–7 Business Days |
Hiring
Hiring & compliance in Malaysia
Key employment rules for international employers hiring in Malaysia.
Working Hours
Standard working hours are generally limited to 45 hours per week. Overtime pay requirements apply to eligible employees under Malaysian labor regulations.
Probation Period
Probation periods commonly range from 3 to 6 months depending on the employment contract and company policy.
Notice Period
Notice periods are generally determined by the employment contract, with minimum statutory requirements applying where contractual terms are absent.
Employment termination in Malaysia
Working Hours
Standard working hours are generally limited to 45 hours per week. Overtime pay requirements apply to eligible employees under Malaysian labor regulations.
Probation Period
Probation periods commonly range from 3 to 6 months depending on the employment contract and company policy.
Notice Period
Notice periods are generally determined by the employment contract, with minimum statutory requirements applying where contractual terms are absent.
Statutory Benefits
Eligible employees may receive benefits through the Employees Provident Fund (EPF), Social Security Organisation (SOCSO), Employment Insurance System (EIS), paid annual leave, sick leave, public holidays, and maternity leave.
Termination Protections
Employers must have valid grounds for termination and comply with procedural fairness requirements. Unfair dismissal claims may be brought before the Industrial Court.
Customer success
Employ in Malaysia with one partner
Gini hires and employs people in Malaysia under local rules, covering the contract, payroll, tax and social contributions, without opening a local entity first.
Payroll, tax and social security stay with one accountable partner.
Gini TalentEmployer of Record
Download free guide for Malaysia
A practical guide to employment, payroll, tax and EOR compliance in Malaysia.
