Currency
Ringgit
Payroll Frequency
Employer Taxes
Employer Payroll Contribution 12.0% - 13.0% Provident Fund for employees under 60.

About 

Malaysia

Malaysia, lies north of the equator. Kuala Lumpur is the capital city that lies 25 miles from the coast. Malaysia, is separated but the South China Sea into East Malaysia and Peninsular Malaysia.

Overview

Population
32,730,000
Language
Malaysian
Capital
Kuala Lumpur
Currency
Ringgit
Country code
MYR
Min wage
$283
Working hours
9 AM - 5 PM
Weekdays
The workweek and weekend varies between states, with most states and federal territories observing a Monday–Friday weekend
Work hours per week
44

Payroll

Cycle
  • Salary are typically paid monthly.
  • Salaries must be paid within seven days of the beginning of each month.
Avg employer tax

Employee Income Tax

  • 0.00% Up to 5,000
  • 1.00% 5,000 - 20,0000
  • 3.00% 20,000 - 35,000
  • 8.00% 35,000 - 50,000
  • 13.00% 50,000 - 70,000
  • 21.00% 70,000 - 100,000
  • 24.00% 100,000 - 250,000
  • 24.50% 250,000 - 400,000
  • 25.00% 400,000 - 600,000
  • 26.00% 600,000 - 1,000,000
  • 28.00% 1,000,000 - 2,000,000
  • 30.00% 2,000,000 and over

Taxation

Tax breakdown - Employer

Employer Payroll Contribution

  • 12.0% - 13.0% Provident Fund for employees under 60.
VAT
  • The standard Sales and Service Tax is 6%

Holidays / PTO

Public holidays
  • 01-Jan  New  Year's Day    
  • 14-Jan  Birthday of Yang  di-Pertuan Besar    
  • 28-Jan  Thaipusam        
  • 01-Feb  Federal Territory  Day    
  • 12-Feb  Chinese Lunar New  Year's Day    
  • 13-Feb  Second day of  Chinese Lunar New Year    
  • 13-Feb  Chinese Lunar New  Year Holiday    
  • 14-Feb  Valentine's Day        
  • 04-Mar  Anniversary of the  Coronation of the Sultan of Terengganu    
  • 11-Mar  Isra and Mi'raj
  • 20-Mar  March Equinox    
  • 23-Mar  Birthday of the  Sultan of Johor        
  • 02-Apr  Good Friday    
  • 04-Apr  Easter Sunday    
  • 13-Apr  First Day of Ramadan    
  • 15-Apr  Declaration of  Malacca as Historical City    
  • 26-Apr  Birthday of the  Sultan of Terengganu    
  • 29-Apr  Nuzul Al-Quran        
  • 01-May  Labour Day    
  • 13-May  Hari Raya Puasa    
  • 14-May  Hari Raya Puasa Day  2    
  • 22-May  Pahang State Holiday    
  • 26-May  Wesak Day    
  • 30-May  Harvest Festival    
  • 31-May  Harvest Festival  observed    
  • 31-May  Second Day of  Harvest Festival        
  • 01-Jun  Gawai Dayak    
  • 02-Jun  Gawai Dayak Holiday    
  • 07-Jun  The Yang di-Pertuan  Agong's Birthday    
  • 20-Jun  Sultan of Kedah's  Birthday  
  • 21-Jun  June Solstice        
  • 07-Jul  George Town World  Heritage City Day    
  • 10-Jul  Penang Governor's  Birthday    
  • 17-Jul  Birthday of the Raja  of Perlis    
  • 19-Jul  Day of Arafat    
  • 20-Jul  Hari Raya Haji    
  • 20-Jul  Hari Raya Haji  holiday    
  • 21-Jul  Hari Raya Haji (Day  2)    
  • 22-Jul  Sarawak Independence  Day    
  • 30-Jul  Birthday of the  Sultan of Pahang        
  • 10-Aug  Muharram/New Year    
  • 24-Aug  Birthday of the  Governor of Malacca    
  • 31-Aug  Malaysia's National  Day        
  • 13-Sep  Almarhum Sultan  Iskandar Hol Day    
  • 16-Sep  Malaysia Day    
  • 23-Sep  September Equinox        
  • 02-Oct  Birthday of the  Governor of Sabah    
  • 09-Oct  Birthday of the  Governor of Sarawak    
  • 19-Oct  The Prophet  Muhammad's Birthday (Tentative Date)        
  • 04-Nov  Diwali/Deepavali    
  • 05-Nov  Birthday of the  Sultan of Perak    
  • 11-Nov  Birthday of the  Sultan of Kelantan    
  • 12-Nov  Birthday of the  Sultan of Kelantan (Day 2)        
  • 11-Dec  Birthday of the  Sultan of Selangor    
  • 21-Dec  December Solstice    
  • 24-Dec  Christmas Eve    
  • 24-Dec  Christmas Eve    
  • 25-Dec  Christmas Day    
  • 31-Dec  New Year's Eve
Sick days
  • Maximum of two years employment: 14 days per annum
  • Between 2 and 5 years:
  • 18 Days per year;
  • 5+ years: 22 Days per annum
Maternity leave
  • Employers will cover female employees for up to 90 days if they are employed within the last four month and have worked at the same employer for more than 90 days during the nine months preceding childbirth.
Paternity leave
  • The law does not provide for paternity leave in the private sector.
  • However, fathers in the public sector have the right to paternity leave for 7-14 days.

Termination

Termination Process
  • Employees can be dismissed for misconduct or poor work performance.
  • Termination is subject to employee challenge for unfair dismissal.
  • It is recommended that proper procedure is followed (warning, time and guidance to improve performance) in order to reduce the likelihood of an unfair dismissal claim.
Notice Period
  • No set amount but should be equitable between employee and employer
Severance Pay
  • Minimum termination benefits for employees who are fired for reasons not connected to their conduct are as follows:
  • Up to two years of employment: 10 days per year
  • Between 2 to 5 years: 15 days per year 5 plus years: 20 days per year
Probation Period
  • Probation is optional. The common practice is to have 1-3 months probations.
  • The Employment Act does not distinguish between employees on probation and permanent employees.
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