🇲🇾 Hire in Malaysia: cost, rules and best EOR options

English-speaking, multilingual workforce with competitive wages and a mature shared-services and tech sector, close to Singapore.

Last verified 2026-10-05. How we research · Affiliate disclosure

Not professional advice. Rates, rules and prices change often. Figures here are researched estimates from the sources listed; anything marked “unverified” needs checking with the provider or a local adviser before you rely on it.
Key facts: hiring in Malaysia
  • Employer on-costs: 13.95–15.95% of gross salary (on a $60,000 salary, about $68,370–$69,570 total)
  • EOR onboarding: not verified; own entity: not verified
  • Probation: Customarily 3-6 months by contract; not fixed by statute.
  • Currency: Malaysian ringgit (MYR)
  • Data confidence: medium, verified 2026-10-05

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What it costs to employ someone in Malaysia

Employer on-costs run roughly 13.95–15.95% on top of gross salary. Derived for Malaysian employees under 60: EPF 12% (wages over MYR 5,000) or 13% (MYR 5,000 and below) + SOCSO 1.75% + EIS 0.2% (both capped at monthly wage MYR 6,000, per secondary source), plus HRDF levy 1% for covered employers with 10+ staff (high end uses EPF 13% + HRDF). Non-citizens are subject to 2% employer EPF from October 2025 (secondary source), so cost is much lower for foreign employees. Excludes paid leave and termination benefits.

ContributionRateNotes
EPF (Employees Provident Fund)13% (wages up to MYR 5,000) or 12% (above), employees under 60PwC: 12% employer / 11% employee for monthly pay over MYR 5,000; 13% for MYR 5,000 and below per secondary sources. Non-citizens subject to prescribed rates from October 2025 (2% each per secondary source).
SOCSO (Employment Injury + Invalidity)1.75% of wages (max MYR 104.15 per month for both schemes per PwC)Employee 0.5%; PwC gives MYR 74.40 for EIS-only (employment injury) coverage for older workers.
EIS (Employment Insurance System)0.2%Employee also 0.2%; secondary source.
HRDF levy1% of monthly wagesEmployers with 10+ employees in covered sectors (0.5% for some smaller employers; not verified).

Employer withholds the employee EPF (11%), SOCSO, EIS and monthly tax deductions (PCB/MTD).

Mandatory benefits

Employment rules at a glance

PayrollMonthly; wages paid within 7 days of the end of the wage period (general knowledge)
ProbationCustomarily 3-6 months by contract; not fixed by statute.
Notice & severanceIf contract is silent: 4 weeks (under 2 years), 6 weeks (2-5 years), 8 weeks (over 5 years). Termination benefits for EA-covered employees: 10 days (under 2 years), 15 days (2-5 years) or 20 days (over 5 years) per year of service on retrenchment (general knowledge).
Working time45 hours per week maximum (Employment Act amended 2022); overtime paid at 1.5x on normal days.
Paid leave8 days (under 2 years), 12 days (2-5 years), 16 days (over 5 years) of annual leave, plus at least 11 public holidays under the Employment Act (general knowledge).
Minimum wageMYR 1,700 per month from 1 February 2025 for employers with five or more employees and professional activities; smaller employers from 1 August 2025 (Malay Mail / government announcements) - https://www.malaymail.com/news/malaysia/2025/02/01/new-minimum-wage-of-rm1700-takes-effect-today-for-over-43-million-workers/165129

Termination

Dismissal without just cause can be challenged at the Industrial Court for reinstatement or compensation. The Employment Act covers all employees since 2022, with some protections limited to those earning up to MYR 4,000.

Employee or contractor in Malaysia?

Contractors are usable; the Employment Act defines employment in substance. Misclassification risk is moderate.

Compare contractor vs employee cost →

Hiring through an EOR in Malaysia

A foreign company needs a Sdn Bhd or EOR to employ locally. EORs handle EPF, SOCSO, EIS and PCB. Timelines not verified.

Typical onboarding: EOR not verified; own entity not verified. MYT, UTC+8 all year with no DST; 12-13 hours ahead of US Eastern.

Providers worth shortlisting

Pricing is global list pricing where public; country-specific quotes may differ. Full “best EOR for Malaysia” guide →

ProviderBest forEOR pricingCoverage
DeelCompanies that want one platform for contractors, EOR and a US PEO, with transparent per-seat list prices.$599 per EOR employee per month (public list price, checked 2026-10-05)150+ countries (vendor claim, per Deel's own and third-party descriptions)Visit Deel
RemoteTeams that want a published price for each product (EOR, global payroll, contractors, contractor of record, US PEO) and an affiliate program with 12-month revenue share.$699 per employee/month (public list price, checked 2026-10-05)90+ countries for EOR (vendor pricing page claim)Visit Remote
RipplingCompanies already running (or willing to adopt) a unified HR, IT and finance platform who want global hiring as an add-on module.Quote-based / not public—Visit Rippling
OysterDistributed teams that want published EOR and contractor prices and a long-running affiliate program with tiered revenue share.$699 per employee/month (public list price, checked 2026-10-05); annual discounts available; refundable deposit required120+ countries EOR; contractors in 180+ countries (vendor claim)Visit Oyster
Papaya GlobalMid-size and larger companies that need multi-country payroll orchestration and workforce payments, and will go through a sales process.Quote-based / not public160+ countries (vendor claim as repeated on FlexOffers listing and third-party pages)Visit Papaya Global
MultiplierCost-conscious teams that want EOR priced below $500 per employee with an annual discount.Third-party summary of Multiplier's pricing: EOR from $459/employee/month on annual contracts and $499 on monthly contracts (not confirmed; multiplier pricing page returned 403 to our fetch)—Visit Multiplier
RemofirstSmall teams that want the lowest published EOR starting price and a free contractor tier.Starting at $199 per person/month (public list price, checked 2026-10-05); 'no hidden fees, setup fees, or minimum contract terms' per vendor page185+ countries for EOR (vendor claim)Visit Remofirst
Pebl (formerly Velocity Global)Companies that want an EOR with a tiered reseller/partner program and are comfortable with a recently rebranded vendor.Third-party reports a flat $399 per employee/month (not confirmed on vendor page; hellopebl.com/pricing returned 404)185+ countries (third-party report)Visit Pebl (formerly Velocity Global)

Paying and covering your team in Malaysia

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Related

FAQ

What are employer contributions in Malaysia?

EPF 12-13%, SOCSO 1.75%, EIS 0.2% and a 1% HRDF levy for covered employers: roughly 14-16%.

Do foreign employees pay EPF?

From October 2025 non-citizens are subject to mandatory EPF at prescribed rates (secondary sources say 2% each).

What is the minimum wage?

MYR 1,700 per month since February 2025.

What notice applies?

Contract terms apply; otherwise 4, 6 or 8 weeks by length of service.

Still unverified: EPF 13% vs 12% split and SOCSO/EIS rates are from secondary sources; HRDF sector coverage and smaller-employer rate; Leave, notice and termination benefit scales from general knowledge; Foreign-worker EPF rate (2%); EOR/entity timelines.

Sources

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