Malaysia

• New Year's Day
• New Year Holiday
• Chinese New Year
• Hari Raya Aid il-fitri
• Hari Raya Aid il-fitri Holiday
• Hari Raya Aidilfitri Holiday (except Johor & Kedah)
• Labour Day
• Wesak Day
• Agong’s Birthday
• Hari Raya Haji
• Awal Muharram
• Merdeka Day
• Malaysia Day
• Maulidur Rasul
• Christmas Day

Working Hours

Employees can work up to eight hours a day, or 45 hours per week.

Minimum Wage

The current minimum wage is MYR 1,500. However, effective February 2025, the minimum wage will increase to MYR 1,700 for all workers in the private sector, both citizens and foreign workers.

Employee Tax

Annual income	Tax rate
Up to MYR 5,000	0%
MYR 5,001 - 20,000	1%
MYR 20,001 - 35,000	3%
MYR 35,001 - 50,000	8%
MYR 50,001 - 70,000	13%
MYR 70,001 - 100,000	21%
MYR 100,001 - 250,000	24%
MYR 250,001 - 400,000	24.5%
MYR 400,001 - 600,000	25%
MYR 600,001 - 1,000,000	26%
MYR 1,000,001 - 2,000,000	28%
More than MYR 2,000,000	30%
Employees’ Provident Fund (EPF)	11%
Social security contribution	MYR 104.15 per month

Bonuses

There are no statutory bonus schemes in Malawi, but a 13th-month salary is common.

If a contract lasts more than one month, the employer must issue a written contract to the employee. All contracts should include:

• Category of employment
• Starting salary, plus bonuses and allowances
• Probation period
• Working hours
• Overtime terms

Both indefinite and fixed-term contracts are permitted in Malaysia.

According to the Employment Act, employees can apply for flexible working arrangements to vary the hours, days, or place of work.

Annual Leave

Minimum of eight days’ paid holiday for those with less than two years of service. This rises to 12 days after two years and 16 days after five years.

Sick Leave

Employees with less than two years of service are entitled to 14 days of sick leave. This rises to 18 after two years and 22 days after five years. If hospitalisation is necessary, sick leave may be extended to 60 days. A medical examination is required.

Parental Leave

• Maternity leave: at least 98 days' paid leave.
• Paternity leave: seven days' paid leave for up to a maximum of five births.

Termination Process

Employers in Malaysia can terminate a contract, provided they give notice in line with legal requirements.

Other grounds for dismissal include:

• Serious misconduct
• Serious breach of contract

Employees can also give notice of termination in line with their contract terms.

Severance Pay

Employees with more than one year of service are entitled to severance pay.

Severance pay starts at 10 days' wages for the first year of service, rising to 15 days per year after two years of service and 20 days after five years of service.

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