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Looking to hire in Malaysia

Companies must either set up a local entity or partner with a global employment provider.

NEO AI Last Updated Mar 6, 2026 with NEO AI

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Employing in Malaysia

Key employment information for hiring and managing employees in Malaysia.

Minimum Wage
MYR 20,400
per year
Employer costs
~1%
of salary

Minimum Wage

MYR 20,400 per year

Employer costs

  • Hrdf Levy: 1%

Taxes

Estimated employer contributions of approximately 1% of gross salary, covering mandatory social contributions and insurance.

Employee Taxes

0% RM0 – RM5,000
1% RM5,001 – RM20,000
3% RM20,001 – RM35,000
6% RM35,001 – RM50,000
11% RM50,001 – RM70,000
19% RM70,001 – RM100,000
25% RM100,001 – RM400,000
26% RM400,001 – RM600,000
28% RM600,001 – RM2,000,000
30% RM2,000,001+

Employer Taxes & Contributions

Estimated Employer Cost

~1%
Hrdf Levy 1%

Working hours

Working hours per week

40 hours per week

Leave

Annual leave

8 days per year

Personal/Carer's leave

14 days per year

Public holidays in Malaysia

Birthday Of Hm Yang Di Pertuan Agong
Chinese New Year
Chinese New Year Day 2
Christmas Day
Eid Al Adha
Eid Al Fitr
Eid Al Fitr Second Day
Islamic New Year
Labor Day
Malaysia Day
National Day
Prophets Birthday
Vesak Day

Termination

Notice period

30 days minimum (28 days during probation)

Probation period

90 – 180 days

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