Employee benefits
in Malaysia.

SALARY PAYMENT IN Malaysian Ringgit (MYR, RM)

CONTRACT LANGUAGES Malay / English

PAYROLL TAX 13.22%

PAYROLL CYCLE Monthly

TIME TO HIRE 24 hours
Get Started

Horizons-owned entity with local country experts in Seoul.

We offer fair, scalable, and transparent pricing on South Korea PEO service. Contact us for a cost breakdown

End service in South Korea with no additional penalties or fees.

Including vision, dental, death & disability, travel, and more.

Hire and pay talents
with Horizons in
180+ countries

Get started

Malaysia

Healthcare in Malaysia

Although employment legislation prescribes for social security schemes such as SOCSO, which includes the Employment Injury Insurance Scheme/EIIS and the Invalidity Pension Scheme/IPS; the Malaysian government does not offer a national medical insurance program for employees – buying private medical and life insurance is a must.

Within company and individual employment agreements, most employers in Malaysia provide for certain employee benefits. Insurance companies such as AIA Malaysia Bhd offer employee benefits products.

Alternatively, as part of our global PEO/EoR services, Horizons brokers tailored private medical insurance packages through Horizons Health by SafetyWing®.

Pensions in Malaysia

Provided for in the Employees Provident Fund Act (1991), Malaysia’s compulsory pension/retirement scheme for private sector employees is known as the Employee’s Provident Fund/EPF.

The EPF is funded entirely through contributions from employers and employees. Total employer contribution to the EPF is 13% (or 12% if the employees’ monthly salary is below RM5,000). The EPF provides defined contribution-type benefits to members and although it is mandatory for Malaysian nationals & permanent residents, it is voluntary for expatriate employees.

Disability in Malaysia

The Persons with Disabilities Act (2008) provides that individuals with disabilities have the right to access employment on an equal basis with persons without disabilities.

In Malaysia, the costs of living with a disability or injury that results from a workplace injury is covered by the Employment Injury Insurance Scheme/EIIS and the Invalidity Pension Scheme/IPS.

Unemployment in Malaysia

In Malaysia the Employment Insurance Scheme or EIS covers for unemployment protection & reemployment training.

The EIS is managed by SOCSO (Social Security Organisation) to help Malaysians cope with job loss and retrenchment. It provides cash allowance and other benefits such as job counseling, training and matching for up to six months. Employees are responsible for contributing to the scheme through payroll taxes.

Companies that employ 10 or more Malaysian employees are also required to register with the Human Resource Development Corporation. The HRD Corp collects a levy that funds upskilling and modernization programs.

Hiring in Malaysia, Made Easy

Your business can easily hire employees in Malaysia without opening a local entity. We handle local employment law, complex tax regulations, and international payroll in 180+ countries worldwide. All you need to do is focus on your business.

FAQs

What employee benefits are mandatory in Malaysia?

Employers are required to make financial contributions to cover certain employee benefits such as the Employee Provident Fund/EPF. Note that the Malaysian government doesn’t offer a national medical insurance program for employees -buying private medical and life insurance is a must.

What employee benefits does Horizons cover in Malaysia?

Horizons offer tailored private medical insurance packages through Horizons Health by SafetyWing®.

Success stories from businesses we’ve helped enter and grow in new markets.

Client Testimonials

"As a seed-stage, London-based startup, we were initially hesitant to expand internationally due to the administrative workload involved. Horizons took the headache out of the process, allowing us to hire a team of software engineers in Germany."

Gabor SzedlakCo-founder & COO at MindLabs (UK)

"I truly appreciated the thoroughness and the professionalism of Horizons personnel while we hired internationally with them. They were knowledgable on all subject matters pertaining to international employment."

Gary PaskyVP Software Development, PICS ITech (USA)

"On deciding to begin commercial activities in Asia Pacific, we needed a provider to handle the employment and remuneration of our workforce. With Horizons the result was fast, efficient, and fit-for-purpose. We recommend Horizons as an EOR provider.”

Chris MorrellManaging Director, Schaeffler Group (Germany)

"The collaboration with the Horizons team is excellent. Both our local employee as well as our HQ in Germany are more than pleased with the support provided and the simplicity of the service. We can highly recommend the Horizons solution to anyone."

Christoph EngelbertCo-Founder & CTO, Clevabit (Germany)

"We needed an EOR that could provide expert support for payroll in APAC. We are pleased with Horizons’ expertise and the fact that they are flexible, responsive, and easily accessible from Belgium. They were able to provide services within the short timeline we required."

Katia FlamandHuman Resources, Devian Chemicals (Belgium)