If you’re looking to hire employees in Malaysia for your business, AYP Group can help make the process easy. Our Malaysia EOR service handles HR, benefits, payroll, and tax needs, allowing you to quickly hire employees and test out new markets in Malaysia. Our EOR solutions enable you to build your team without the legal and financial responsibilities of setting up a separate entity or worrying about contractor risks. Let us handle the details while you focus on your business goals. Contact us today to get started!

EOR Services Malaysia

Country Overview 

Malaysia is a Southeast Asian country located on the Malay Peninsula and the island of Borneo.Malaysia has a population of about 32 million people, and the country is ethnically diverse, with Malay, Chinese, and Indian being the largest ethnic groups. Islam is the official religion, but the country also has a significant number of Buddhist, Christian, and Hindu citizens.

Malaysia has a mixed economy, with a strong focus on exports, particularly of electronics, machinery, and petroleum products. The country is also a major producer of rubber and palm oil. Tourism is also an important contributor to the economy, with Malaysia being a popular destination for visitors from around the world.

 

Capital City

Kuala Lumpur

 

Currency

MYR (Malaysian Ringgit)

 

Principal Language

Bahasa Malaysia 

 

Government

Federal parliamentary democracy

 

Employment contracts

In Malaysia, there are several types of employment contracts that an employer can offer to an employee. These include:

  1. Permanent contract: This is a long-term contract that does not have a fixed expiration date.
  2. Temporary contract: This is a short-term contract that is usually for a specific project or task.
  3. Part-time contract: This is a contract for an employee who works fewer hours per week than a full-time employee.
  4. Internship contract: This is a contract for a student or recent graduate who is working in a company to gain practical experience.
  5. Apprenticeship contract: This is a contract for a person who is learning a trade or craft through on-the-job training.
  6. Freelance contract: This is a contract for a self-employed person who provides services to a company on a project-by-project basis.

It is important to note that employment contracts in Malaysia must be in writing and must be in accordance with Malaysian labor laws.

 

Working Hours

The standard working hours per week is 45 hours, with a maximum of 8 hours per day

 

Public holidays

 

Here is a list of national holidays in Malaysia:

  1. New Year’s Day: January 1st
  2. Chinese New Year: January or February (date varies)
  3. Labor Day: May 1st
  4. Wesak Day: May or June (date varies)
  5. Hari Raya Puasa: May or June (date varies)
  6. Hari Raya Haji: July or August (date varies)
  7. Malaysia Day: September 16th
  8. Deepavali: October or November (date varies)
  9. Christmas Day: December 25th

 

Benefits contribution

In Malaysia, employers are required to contribute to the following benefits for their employees:

  1. Social security: Employers are required to contribute to the Social Security Organization (SOCSO), which provides protection for employees in the event of illness, injury, or death. The contribution rate is based on the employee’s salary and is typically shared equally between the employer and the employee.
  2. Retirement: Employers are required to contribute to the Employees Provident Fund (EPF), which is a retirement savings scheme for private sector employees. The contribution rate is based on the employee’s salary and is typically shared equally between the employer and the employee.
  3. Medical insurance: Employers are required to provide medical insurance for their employees through the Private Retirement Scheme (PRS) or the Employee Insurance Scheme (EIS). The contribution rate for these schemes is based on the employee’s salary and is typically shared equally between the employer and the employee.

 

Find out about AYP’s total workforce management solution today! 

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