MALAYSIA PEO & EOR
Hire in Malaysia without a local entity today
As a Global PEO & EOR service provider, we pride ourselves on our global reach, in-country knowledge, and ability to swiftly and efficiently mobilize workers around the world. Our robust PEO/EOR covers everything from global HR, payroll, compliance, in-country support, immigration, visas, and more.
Get started and hire in Malaysia today with Procorre Global.
DID YOU KNOW
- Malaysia is extremely multicultural. Its population of 32.6 million encompasses around 60% indigenous people, 21% Chinese and 6% Indian.
- Malaysia’s biggest exports include electrical and electronic products, petroleum products and palm oil.
- Malaysia is ranked 6th among destinations around the world with the best food, with the cuisine drawing a range of influences from its multicultural population.
Malaysia PEO Services
Employment opportunities and natural treasures
Malaysia is a beautiful country with a wealth of natural treasures to dive into and it is a growing economy for expats and foreign businesses. The country boasts a high number of employment opportunities, along with excellent healthcare facilities, international schools and a fantastic climate.
Malaysian companies are only able to hire foreign workers if they can prove that there is a shortage of Malaysians who can do the job. Industries that regularly utilise foreign workers include finance, IT, management and more. The Malaysian population is well educated, so foreign workers are often expected to have good qualifications (usually a minimum of a bachelor’s degree and work experience).
Expanding your business into the Malaysian market via an Employer of Record or PEO solution can bring a wealth of benefits. Including the ability to access Malaysia’s highly educated workforce, affordable living, and the Southeast Asian market.
Working in Malaysia
The Malaysian Employment Act entitles workers to annual, medical, hospitalisation and maternity leave; this includes public holidays and a range of other benefits.
Under the Malaysian Employment Act, the working hours are defined as maximum 8 hours a day, for 6 working days a week. That makes up to a 48 hours work week. For overtime pay, any work beyond the 10 hour mark per working day will be considered overtime work. Employees who are working under these overtime conditions will be paid at a rate not less than 1.5x the hourly basic rate of pay. The maximum number of overtime hours an employee should be working overtime is not more than 104 hours in a work month.
Public Holidays (2022)
In Malaysia, there are a mix of federal and general holidays. General holidays are only applicable to certain states in Malaysia, while federal applies to all states.
There are 12 federal holidays in Malaysia.
These are the dates for 2022:
- Chinese New Year, 1-2 Feb
- Labor Day, 1-2 May
- Hari Raya Puasa, 3-4 May
- Wesak Day, 15 May
- Yang di-Pertuan Agong’s Birthday, 6 Jun
- Hari Raya Haji, 10-12 Jul
- Awal Muharram, 31 Jul
- Merdeka Day, 31 Aug
- Malaysia Day, 16-18
- Sep Prophet Muhammad’s Birthday, 9-10 Oct
- Deepavali, 24 Oct
- Christmas Day, 25 Dec
Under statutory requirements, all female employees regardless of Employment Act (EA) or Non-EA classification, are entitled to 60 consecutive days of paid maternity leave for her first 5 children as long as they fulfil both the criteria below: · Employed by the employer for at least 90 days in total during the 9 months of pregnancy before her confinement · Employee was employed at any time in the four months immediately before her confinement For a period of 90 days after the female employee’s maternity leave, she also cannot be terminated as Malaysia enforces strict pregnancy discrimination laws.
In Malaysia however, there are no statutory paternity leave policies. This is entirely up to the employer’s discretion to extend the offer to the male employees.
Malaysia is generally a tax-friendly country, and they follow a progressive tax rate. For resident individual taxpayers, tax rates begin from 0% on the first RM5,000 and is capped at a maximum of 30% on chargeable income exceeding RM2 million. From 2020, non-resident individual taxpayers in general, face a flat rate of 30%.
In Malaysia, there are mainly 3 types of employment pass for foreign workers. They are the employment pass, temporary employment pass and the professional visit pass. Depending on the skillset of the foreign applicant as well as the sector quota, different work passes are issued. An expatriate post must be filed at government agencies first before the application to the Immigration Department of Malaysia.
The ability to speak English is valued in the Malaysian market, however if foreign workers can also speak a local language (such as Malay or Cantonese), then they will have an advantage.
Malaysia has a diverse range of religions, with Islam being the dominant faith (at 61.3%). Buddhism and Christianity also make up large percentages of the populace (at 19.8% and 9.2% respectively).
Impacts from COVID-19
The Malaysian government introduced the Movement Control Order (MCO) in March 2020, marking the closure of private and public premises.
Many workers adapted to working from home. Phasing back into the office has begun, and many workers have opted for hybrid working patterns.