Employer of record in Malaysia
23 sourced figures on hiring in Malaysia, drawn from 6 sources and normalized for comparison: statutory rules, employer cost and exactly what an EOR covers locally. Every figure is dated.
Hiring here: moderately complex, mid-range on cost, and fast to hire via EOR.
Employer of record in Malaysia: the statutory snapshot
The headline employer costs, pay floor and worker protections for hiring in Malaysia through an employer of record, each figure sourced and dated. 49 EOR providers cover Malaysia.
| Minimum wage | MYR 1,700/mo | Manual / editor, 2025-02-01 |
|---|---|---|
| Employer social security | 14.45% | ISSA Country Profiles, 2024-01-01 |
| Corporate tax | 24% | PwC Worldwide Tax Summaries, 2026-06-16 |
| Notice period | 6.7 weeks | National government, 2026-09-12 |
| Severance | 17.2 weeks | National government, 2026-10-11 |
| Annual leave (minimum, once eligible) | 8 | National government, 2026-09-12 |
| Public holidays | 11 days | National government, 2026-01-01 |
| Maternity leave | 14 weeks | National government, 2026-09-12 |
As of 2026-10-16. Each value is the winning figure from primary and harmonized sources, resolved by a documented priority chain. Full record with provenance below.
Reading the data
What the figures say about Malaysia
Malaysia's statutory minimum wage stands at 1200 per month, against an average monthly wage of MYR 2933 as of 2020, and there is no 13th salary requirement. Employers pay a social security rate of 14.45%, while employees contribute 11.7%, and the corporate tax rate is 24%. Exiting an employee involves statutory severance of 14.8 weeks and a notice period of 6.7 weeks. Leave obligations include 14 weeks of maternity leave, 1 week of paternity leave, and 11 public holidays, on top of actual weekly hours worked of 46. The retirement age is set at 55 years, and union density stands at 8.7% against collective bargaining coverage of just 0.4%.
Where to start
Three ways to hire in Malaysia
You are the employer. Lowest per head cost at scale, months to establish.
You direct the work, the provider's local entity is the employer on paper. Compliant in days.
See the 49 providers below ↓Not your employee. Fastest and cheapest, with misclassification exposure.
The full record
Every figure behind the snapshot
Not a guide, a record: 23 figures for Malaysia from 6 sources, last refreshed 2026-10-16. Each value carries its source and the date it was pulled. Hover any provenance tag for the full chain.
Average monthly earnings in Malaysia by occupation (2020)
Gross monthly earnings of employees per ISCO-08 major occupation group, in MYR — the official ILOSTAT survey figures, not estimates. Use them to sanity-check an offer before an EOR quote turns it into total employer cost.
| Occupation group | Monthly (MYR) | ≈ USD |
|---|---|---|
| All occupations | 2,933 | $698 |
| Managers · ISCO 1 | 6,479 | $1,541 |
| Professionals · ISCO 2 | 5,301 | $1,261 |
| Technicians and associate professionals · ISCO 3 | 3,313 | $788 |
| Clerical support workers · ISCO 4 | 2,370 | $564 |
| Service and sales workers · ISCO 5 | 1,926 | $458 |
| Skilled agricultural, forestry and fishery workers · ISCO 6 | 1,547 | $368 |
| Craft and related trades workers · ISCO 7 | 1,891 | $450 |
| Plant and machine operators and assemblers · ISCO 8 | 1,918 | $456 |
| Elementary occupations · ISCO 9 | 1,727 | $411 |
Source: ILOSTAT (EAR_EMTA, employees, both sexes), reference year 2020. Survey earnings differ from statutory minimums above.
// recent updates
What changed in Malaysia
Checked against official sources on 16 October 2026
No rule changes recorded since we began logging them.
Corrections to our data
- Severance payCorrected 11 October 2026
Now 17.2 weeks, was 14.8 weeks. Employment (Termination and Lay-Off Benefits) Regulations 1980 reg. 6: 10 days' wages per year if <2 yrs; 15 days if 2-<5 yrs; 20 days if 5+ yrs. 1y 10 days, 5y 100, 10y 200 = avg 103.3 days. A day's wage for a monthly-rated employee = monthly/26 (EA s.60I), i.e. 1/6 of a week: 103.3/6 = 17.2 wk.
Source →
Every figure is sourced and dated. How we verify the data →
The differentiator
What an EOR handles in Malaysia
An EOR removes the entity and the payroll machinery. It does not remove your obligations as the people manager.
Provider × country
Who can employ in Malaysia
49 providers operate an EOR in Malaysia, ranked by Select Score.
Comparing EOR options for Malaysia?
Run a side-by-side on the providers that actually operate there.