Employer of Record (EOR) Malaysia

Hire Fast & Comply With EOR in Malaysia

Looking to expand your business into Malaysia without setting up a local entity? AYP offers trusted Employer of Record Malaysia solutions that allow you to hire, manage, and pay employees legally and efficiently. Our Employer of Record (EOR) Malaysia service ensures compliance, HR, payroll, and statutory benefits are all taken care of—so you can scale fast, risk-free. Our Employer of Record Malaysia experts are dedicated to helping companies like yours navigate complex regulatory frameworks.

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Key Takeaways

Why Choose an Employer of Record Malaysia Partner?


Malaysia’s robust economy, multilingual workforce, and strategic location within Southeast Asia make it a prime destination for regional expansion. However, expanding into a new market also requires in-depth understanding of local laws, payroll regulations, cultural nuances, and compliance risks.


By engaging AYP as your Employer of Record Malaysia partner, your company can:

  • Rapidly onboard employees without establishing a legal entity
  • Delegate HR, payroll, and statutory obligations to a local expert
  • Navigate Malaysia’s Employment Act with confidence
  • Focus on business growth while we manage local compliance

Our advisory approach ensures that we go beyond execution. We provide strategic recommendations on how to structure employment terms, localise benefits, and build sustainable workforce plans—all aligned with your global policies and Malaysia’s legal framework. When you choose our EOR Malaysia service, you choose efficiency, compliance, and peace of mind.

What Does an Employer of Record Malaysia Solution Include?


Our Employer of Record Malaysia solution is designed to be comprehensive, compliant, and scalable for organizations of any size. AYP acts as the legal employer, while you retain full operational control of the employee’s day-to-day responsibilities.

Core Employer of Record Malaysia Services

  • Drafting and issuing compliant employment contracts in English and Bahasa Malaysia
  • Managing all statutory contributions (EPF, SOCSO, EIS) and monthly filings
  • Processing monthly payroll with audit-ready reporting and payslips
  • Handling employee expense claims, leave applications, and HR administration
  • Supporting onboarding and exit formalities in accordance with Malaysian law
  • Advising on best-in-class benefits aligned with local expectations and budgets


Our professional HR team in Malaysia ensures that all employment lifecycle activities are carried out smoothly, efficiently, and in strict compliance with local employment law. Choosing an Employer of Record in Malaysia like AYP means your HR processes are simplified, while you gain access to local insight and ongoing advisory.

Statutory Employment Benefits with an Employer of Record Malaysia


In Malaysia, employees are entitled to statutory benefits that protect their financial security and health. These entitlements are enforced by government agencies such as the Employees Provident Fund (EPF), Social Security Organisation (SOCSO), and Employment Insurance System (EIS).

How EOR Malaysia Helps with Statutory Compliance

Our Employer of Record Malaysia service ensures:

· Timely registration and contributions to EPF (12–13% employer / 11% employee)
· Coverage under SOCSO for work injuries and invalidity
· EIS contributions for income support during job loss

Beyond the minimum statutory requirements, AYP also works with clients to tailor competitive total rewards packages, including private medical insurance, travel allowances, performance bonuses, and more. We provide insights into what local employees value most to help you remain competitive as an employer of choice. Partnering with a leading EOR Malaysia provider ensures these benefits are administered correctly and attractively.

Working Hours, Overtime, and Leave Compliance in Malaysia

Malaysia’s labour regulations, including the Employment Act 1955 (as amended), outline clear requirements for working hours, overtime pay, and leave entitlements. Our advisory team ensures your operations remain compliant, especially as employment law evolves.

EOR Malaysia Approach to Time and Leave Management


We manage:

  • Standard working hours (up to 45 hours per week)
  • Weekly rest days and tracking of public holidays
  • Accurate calculation of overtime (1.5x to 3x depending on day)
  • Leave entitlement administration, including:
    o Annual Leave: 8–16 days
    o Sick Leave: 14–22 days
    o Maternity Leave: 98 days
    o Paternity Leave: Optional (recommended practice)

AYP’s Employer of Record Malaysia platform tracks entitlements, ensures accurate payroll deductions or encashment, and automates compliance reporting—reducing administrative burden for your business. With our EOR Malaysia support, you’ll always remain aligned with statutory standards.

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Managing Work Visas Through EOR Malaysia


Hiring foreign talent in Malaysia requires strict adherence to immigration requirements governed by the Ministry of Home Affairs. As part of our Employer of Record Malaysia service, we offer end-to-end support for securing employment passes for eligible expatriates.

How Employer of Record Malaysia Handles Work Passes


We advise on:

  • Eligibility criteria for Employment Pass categories (I, II, III)
  • Documentation required for visa application and renewal
  • Sponsorship requirements, tenure limits, and salary thresholds
  • Managing dependents’ visas and spouse passes

With AYP’s EOR Malaysia framework, you can confidently relocate key talent into Malaysia while ensuring full legal compliance. Our local immigration team works closely with regulatory authorities to minimize delays and ensure a seamless hiring process.

Compliance in Termination and Offboarding with Employer of Record Malaysia


Ending employment in Malaysia must follow due process to avoid wrongful termination claims and reputational risks. AYP provides structured guidance throughout the offboarding process to ensure compliance and professionalism.


EOR Malaysia Expertise in Exit Procedures


We assist with:

  • Calculating notice periods and final settlements
  • Managing Domestic Inquiries for misconduct cases
  • Supporting retrenchments and redundancies with clear documentation
  • Offering guidance on Performance Improvement Plans (PIPs)


Our goal as your Employer of Record Malaysia provider is to ensure every offboarding is handled respectfully and in line with Malaysian labour law, reducing business risk while maintaining a positive employer brand.


Case Study: Scaling into Malaysia Using Employer of Record Services


In early 2024, a Singapore-based SaaS company planned to expand into Malaysia but lacked a local entity and knowledge of local labour requirements. Their goal was to onboard a technical support team within 30 days.


Challenges in Malaysia Expansion Without an EOR

  • No legal entity or payroll setup in Malaysia
  • Tight timeline to begin servicing regional clients
  • Need to offer competitive benefits to attract top local talent


How AYP Helped with Employer of Record Malaysia

  • Delivered compliant employment contracts in English and Bahasa Malaysia within 3 working days
  • Onboarded three employees in 10 business days with full statutory registration
  • Advised on cost-effective health insurance and bonus schemes
  • Provided a dedicated local account manager for day-to-day HR support

Results from EOR Malaysia Support

  • Operations launched two weeks ahead of schedule
  • 100% compliance maintained during audit review
  • Team retention rate above 90% after 12 months

This successful project highlights the strength of our Employer of Record Malaysia solution and its impact on fast, scalable market entry.

Client Testimonials: Real Results for Singapore Businesses


"AYP helped us set up our Malaysia team within two weeks. We didn’t need to worry about compliance or paperwork – they handled everything. This allowed us to focus entirely on sales and business development. – Regional Sales Director, Fintech Company (Singapore)

"As a Singapore startup, we needed a fast and cost-efficient way to expand into Malaysia. AYP’s EOR service made it simple and risk-free. Their local team even helped us tailor benefits to attract top talent." – Co-Founder, HR Tech Platform


"AYP was instrumental in our ASEAN expansion. With their EOR in Malaysia, we were up and running faster than expected – all compliant, no hidden costs." – APAC Operations Lead, Logistics Company


Ready to Hire in Malaysia? Let AYP Be Your EOR Malaysia Partner

With AYP as your Employer of Record in Malaysia, you gain a strategic partner with deep local knowledge, a professional HR infrastructure, and a commitment to compliance. We support your success by offering:

  • Fast onboarding of local and expatriate talent
  • Strategic HR advisory tailored to Malaysia
  • Reliable payroll and statutory compliance
  • Dedicated account managers in-country

Work with AYP’s Employer of Record Malaysia team and take the next step in your ASEAN expansion with confidence. Speak to us today and experience a seamless, compliant hiring process powered by local insight and global standards.

Frequently Asked Questions (FAQs)

What is Employer of Record Malaysia?

An Employer of Record (EOR) in Malaysia is a legal service provider that hires employees on behalf of your business. While you manage the employee’s responsibilities and tasks, the EOR handles employment contracts, payroll, tax filings, and compliance with Malaysian labour laws. Our Employer of Record Malaysia team brings in-depth local knowledge to every engagement.

Why choose Employer of Record Malaysia over direct hiring?

EOR allows you to enter the Malaysian market quickly without entity setup, reduce compliance risk, and benefit from local HR expertise. It is especially suitable for pilot teams, project-based expansions, or companies with evolving headcount needs. Our Employer of Record Malaysia services streamline the process with minimal overhead.

Who provides Employer of Record Malaysia services?

AYP is a trusted EOR provider with a dedicated presence in Malaysia. We combine local expertise with regional experience to deliver reliable, compliant Employer of Record Malaysia solutions.

How does AYP onboard Malaysia employees?

Our onboarding process includes:

  1. Understanding your employment and compensation structure
  2. Drafting and issuing compliant local contracts
  3. Registering employees with EPF, SOCSO, and EIS
  4. Enrolling optional benefits as agreed
  5. Providing orientation support through our local HR specialists

Can I transfer an employee from our other entity to Malaysia under EOR?

Yes. We manage end-to-end transitions including contract changes, visa applications (if applicable), and onboarding under Malaysian regulations through our Employer of Record Malaysia process.

How are bonuses, commissions, and other variable pays managed under EOR Malaysia?

These are structured contractually and processed through monthly payroll. We help align performance-related pay with local reporting standards and tax requirements. Our EOR Malaysia experts ensure this is seamless.

What is the income tax obligation for EOR employees in Malaysia?

Employees under AYP’s Employer of Record Malaysia service are subject to Malaysian income tax laws. We ensure monthly PCB (Potongan Cukai Bulanan) deductions and provide annual EA Forms for submission to LHDN.

Still have more questions? Contact us today

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