Malaysia offers a skilled, multilingual Southeast Asian workforce and a straightforward provident-fund system. All-in employer cost runs around 1.14x the gross salary. Here is what to know before your first Malaysian hire.
Employment runs under the Employment Act (broadened in 2023) plus EPF, SOCSO, and EIS. Written terms are standard, and the provident fund is the largest single on-cost.
Employer costs sit around 15%, dominated by the Employees Provident Fund plus small SOCSO and EIS contributions.
The employer EPF rate is 13% for lower wages and 12% above a threshold, and it goes to the employee's retirement account.
Employees pay income tax under the monthly deduction scheme plus their EPF and SOCSO share, withheld at source. Withholding is the employer's responsibility, which under EOR means ours.
*All figures are estimates from public sources (2025-26), pending ops verification - same basis as the EOR cost calculator. Not tax or legal advice.
Compliant Malaysian employment contract, payroll, EPF, and SOCSO, handled. One invoice, flat $399 per month.