Overview
Currency
رينجت ماليزيا (MYR)
Min wage
1,200/1,100 MYR per month (urban/rural)
Weekdays
The workweek and weekend varies between states, with most states and federal territories observing a Monday–Friday weekend
Tax Breakdown
Employer Payroll Contribution
- Provident Fund (employees under the age of 60): 12%-13%
- Provident Fund (employees over the age of 60): 4%-6.50%
- Social Security (SOCSO): 1.75%
- Employment Insurance (EIS): 0.20%
- Human Resource Development Fund (over ten employees): 1%
VAT
VAT
- 10% for sales tax and 6% for service tax
Tax Calculation for Malaysia
Gross monthly salary costs
GBP 8,334
Estimated taxes and contributions
GBP 8,334

Gross monthly salary
GBP 8,334
Estimated taxes & social security
GBP 8,334

Gross yearly salary costs
GBP 8,334
Estimated taxes and contributions
GBP 8,334

Gross yearly salary
GBP 8,334
Estimated taxes & social security
GBP 8,334

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How it works
Onboarding Process
Onboarding in Malaysia typically includes the following steps to ensure a smooth transition for new hires:
Pre-boarding
Pre-boarding
Pre-boarding
Key Elements of an Employment Contract in Malaysia
When drafting an employment contract for employees in Malaysia, the following key elements should be included:
Name, contact information, and role of the employee.
Employee Leave Policies
Sick days
- Maximum of two years employment – 14 days per year
- Between 2 and 5 years – 18 days per year
- 5+ years – 22 days per year
Maternity leave
- Employers will cover pregnant employees for up to 90 days if they are employed within the last four months 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.
Public holidays in Malaysia
- 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
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.
Name, contact information, and role of the employee.
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