To hire new employees in
Malaysia
, your business must have a local legal entity or an Employer of Record like Borderless in place already. Then there’s the management of local employment compliance, taxes, benefits, payroll, and more. Hiring contractors poses similar challenges.
Borderless handles all of that for you, so you can focus on getting to work with your new team member in
Malaysia
while staying fully compliant with local laws and compliance.
Malay
Malaysian ringgit (RM, MYR)
Monthly
Up to 16
22.45%
35
10 national holidays but it varies – it can do up to 20, depending on the state; Employees are to receive paid time off on at least 11 holidays each year
Up to 60 days
Up to 98 days
In many countries like
Malaysia
, the treatment of employees and contractors is different. If you misclassify a new team member, you could be subjected to penalties and fines. Let Borderless get this right for you, so you don’t have to worry.
MYR 1,500 per month
Overtime compensation is required and may be included in the salary if the employee earns less than MYR 2,000 per month.
Overtime is not required for employees earning more than MYR 2,000 per month and must be agreed upon between the employer and employee. Employees can work up to 104 hours of overtime per month. Employees are paid 150% of their hourly rate for any additional hours worked. Employees are paid 200% of their hourly rate on weekends and 300% of their hourly rate on public holidays.
Working hours are typically eight hours per day, 45 hours per week and 1 day rest is mandatory.
In the event of the death of an immediate family member, employees may take one to three days off work in a row as compassionate leave.
Adoptive parents are entitled to 15 days of leave beginning the day their child is placed in their legal custody.
For all Borderless customers, payments will be made in equal monthly installments on or before the last working day of each calendar month, payable in arrears.
Employee contracts can be terminated for just cause, such as dishonesty, negligence, fraud, or any other work-related offenses, and employees have the right to challenge their dismissal as unfair.
There is no stipulated notice period required under Malaysian employment law.
Notably, there is no legal requirement in Malaysia for the duration of the probation period. However, it is not uncommon for it to last between 3 and 6 months, depending on the agreement reached between the Employers and the employees.
Employees who are terminated unfairly (i.e., for reasons unrelated to their performance or conduct) are entitled to severance packages equal to the length of their employment with the company.
When the world is your competition, it pays to incentivize new hires and existing alike. Borderless benefits packages typically include:
Book your demo of Borderless to help you hire, pay, and take care of new employees and contractors in 170+ countries.