Hire in Malaysia with Mauve's EOR, payroll, and HR solutions

• 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

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.

Global Master Insurance Coverage with Mauve’s Employer of Record Solution. Under a Mauve Group Employer of Record (EOR) solution, clients and their international workers benefit from access to Mauve’s Global Master Insurance Programme—a market-leading, unified corporate insurance framework that supports global compliance across all Mauve entities.

This international insurance coverage ensures legal and regulatory alignment through a combination of a central master policy and country-specific local policies, where required by law. This allows companies to remain fully compliant when expanding their workforce globally or employing staff overseas.

The Global Master Insurance Programme includes the following coverage:

• Employer’s Liability and Public Liability – £10,000,000 combined limit
• Professional Indemnity – £5,000,000 limit
• Worker’s Compensation – Varies depending on the employee’s location

Whether you're expanding internationally or managing global teams, Mauve’s EOR services and insurance support streamline your operations and reduce risk. For tailored advice on mandatory insurance requirements in specific countries, contact Mauve’s international HR consulting team today.

An Employer of Record (EOR) in Malaysia enables businesses to hire employees without establishing their own local legal entity. The EOR manages employment contracts, payroll, statutory contributions, and employment compliance, helping companies build a Malaysian workforce efficiently.

Global payroll services help businesses process salaries, manage tax deductions, administer statutory contributions, and meet Malaysian payroll requirements. Outsourcing payroll can improve accuracy, reduce administrative workloads, and support compliance with local regulations.

Yes. Businesses can use an Employer of Record (EOR) to employ workers in Malaysia without establishing their own subsidiary or branch, subject to applicable legal and regulatory requirements. This approach can help companies enter the Malaysian market without the time and expense of setting up a local entity.

Businesses can outsource HR services such as employment contract administration, employee onboarding, payroll management, statutory contributions, HR policy development, benefits administration, and ongoing employment compliance.

External HR specialists help companies manage local requirements and support their workforce throughout the employee lifecycle.

Malaysia offers access to Southeast Asian markets, a multilingual workforce, established infrastructure, and opportunities across industries such as manufacturing, technology, financial services, and logistics. Its strategic location makes it an appealing base for businesses seeking to expand their regional operations.

Employers in Malaysia must comply with applicable employment legislation, including the Employment Act 1955 where relevant, alongside requirements for statutory contributions and payroll deductions.

These may include Employees Provident Fund (EPF), Social Security Organisation (SOCSO), Employment Insurance System (EIS), and monthly tax deductions (PCB/MTD), depending on the employee’s circumstances.

Foreign nationals generally need the appropriate employment pass or work authorisation to work legally in Malaysia. The relevant requirements depend on factors such as the employee’s role, nationality, salary, and employment arrangement. Employers should confirm the applicable immigration requirements before the employee starts work.

Mauve Group provides Employer of Record (EOR), global payroll, and HR consultancy services to help businesses hire and manage employees in Malaysia. Our solutions support employment administration, payroll processing, local compliance, and workforce management, helping companies establish and grow their Malaysian operations.