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Employer of Record (EOR) in Malaysia

Hire Malaysian developers compliantly. EPF, SOCSO, EIS contributions, and employment contracts handled. No local entity needed.

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Why use an EOR in Malaysia

01

No Local Entity

Skip months of legal setup and tens of thousands in registration fees. We are the legal employer in Malaysia.

02

Full Compliance

Local labor law, social insurance, tax filings, and statutory benefits — all handled for you in Malaysia.

03

Onboard in 24 Hours

Pre-vetted candidates ready to start in 5–10 business days. No waiting months for an entity to spin up.

04

Up to 75% Savings

Hire senior engineers at 60–75% lower cost than equivalent US salaries. No upfront fees, transparent monthly pricing.

We help companies save $103,000+ per hire

24 Hours

to get matched

4.9

avg client rating

200+

companies building with us

98%

talent retention rate

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Start onboarding talent in Malaysia in just 24 hours

1

Share your talent needs

Tell us the role, stack, budget, and timeline. We will source pre-vetted candidates from our Malaysia talent pool.

2

We become the legal employer

We handle compliant employment contracts and local labor laws through our owned entity in Malaysia.

3

You manage the work, we handle the rest

You lead projects and assign tasks. Your Malaysia team works your hours and integrates with your tools.

4

We take care of payroll, taxes, and compliance

From salary disbursement and taxes to benefits and social insurance, we handle everything according to Malaysia regulations.

Malaysia at a glance

Population

34M

Currency

MYR (Malaysian Ringgit)

Tech talent

30,000+ IT graduates per year

Top employers

Grab Malaysia, Carsome, Axiata, AirAsia

Employment Laws & Hiring Guide for Malaysia

Working Hours

45 hours/week max. 8 hrs/day standard.

Overtime Pay

150% weekdays, 200% rest days, 300% public holidays.

Probation Period

Typically 3–6 months. Must be specified in the employment contract.

Leave Entitlements in Malaysia

Leave Type
Entitlement
Annual Leave
8 days (1–2 yrs), 12 days (2–5 yrs), 16 days (5+ yrs).
Sick Leave
14 days (1–2 yrs), 18 days (2–5 yrs), 22 days (5+ yrs). 60 days if hospitalized.
Maternity Leave
98 days paid. Applicable from first day of employment.
Paternity Leave
7 days paid (effective 2023 amendment).
Public Holidays
11 gazetted national holidays. Total varies by state (up to 16).

Notice Period

4 weeks (<2 yrs), 6 weeks (2–5 yrs), 8 weeks (5+ yrs).

Severance Pay

10 days/year (<2 yrs), 15 days/year (2–5 yrs), 20 days/year (5+ yrs).

Payroll & Tax in Malaysia

Component
Details
Employer Contributions
EPF 12–13% + SOCSO ~1.75% + EIS 0.2%.
Employee Contributions
EPF 11% + SOCSO ~0.5% + EIS 0.2%.
Income Tax
Progressive 0%–30%. First MYR 5,000 is tax-free.
Minimum Wage
MYR 1,500/mo (~$320) nationwide.
13th Month / Bonus
Not mandatory. Common in practice, especially in tech sector.

Second Talent handles all of this for you

Payroll, taxes, social contributions, leave tracking, contracts, and termination compliance in Malaysia. You focus on building your product. We handle the rest.

Hire Talent

Inside the EOR platform

One workspace for EOR in Malaysia

Contracts, statutory benefits, payslips, leave, and monthly USD invoicing for your Malaysia team. Every step lives in a single workspace your team and ours share.

  • Malaysia-specific employment contracts auto-generated and e-signed
  • Statutory benefits, social insurance, and tax filings handled monthly
  • Leave tracking, payslips, and HR documents in one place
  • One USD invoice per month — no FX juggling, no local admin
See it live in 24 hours
app.secondtalent.com / shortlist

Senior Full-Stack · Remote · 8+ yrs

Shortlist · 6 engineers

Live
MR

Maria R. 🇵🇭

Sr. Full-Stack · React + Node

Top match
TN

Thanh N. 🇻🇳

Sr. Backend · Go + Postgres

Interview
AS

Adi S. 🇮🇩

Sr. AI · LLM + RAG

New

Avg AI fit

91/100

Time to shortlist

22 hrs

Replacement

Free

EOR in Malaysia FAQs

What does an Employer of Record (EOR) do in Malaysia?
An EOR acts as the legal employer of your team in Malaysia, managing payroll, taxes, contracts, and labor compliance so you can hire without setting up a local entity.
How fast can I onboard employees in Malaysia?
Most hires can be onboarded within 5–10 business days, depending on documentation. We handle local contracts and regulatory alignment from day one.
Do I maintain control over the work?
Absolutely. You direct work responsibilities, reporting lines, performance management, and team culture. We handle the legal and administrative backend.
How much does EOR in Malaysia cost?
Our EOR fee is a transparent monthly amount on top of the engineer's salary. There are no upfront fees, no setup fees, and no hidden costs.
Can I offer localized benefits to my Malaysia employees?
Yes. We administer local statutory benefits (health, leave, social insurance) plus any optional benefits you want to offer (private health, equipment stipends, learning budgets).

What our clients say

Hire compliantly in Malaysia in 24 hours.

$0 upfront costs, pay only when you make a hire

Start Hiring
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