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Delicate Overseas ensures day-to-day guidance to help your business navigate Malaysia labor laws and regulations. Delicate Overseas also ensures payroll is processed weekly or fortnightly (the standard periods in Malaysia ), and that taxes are withheld as required.
As the Malaysia Employer of Record, Delicate Overseas is responsible for employee income tax withholding, payment of payroll taxes to state authorities, and submission of tax returns to the Malaysia Tax Office.
Partnering with our Malaysia PEO is the quickest and most cost-effective way to enter the Malaysia market.
When hiring employees in Malaysia, employers should draft concise, written contracts that detail the terms and conditions of employment. The contract provisions should always be written in both English and Malay.
Employment contracts in Malaysia should include the following provisions:
Letters of offer and employment contracts must detail salary and compensation in the local Malaysian Ringgit (MYR).
When your business partners with Delicate Overseas ’ Malaysia PEO, our in-country experts will assist you to draft letters of offer and employment contracts that comply with local employment legislation.
| Probationary period | 3 – 6 months recommended |
| Termination notice period | 0 to 2 years employment: 4 weeks notice required 2 to 5 years employment: 6 weeks notice required >5 years employment: 8 weeks notice required |
| Severance | 0 to 1 year employment: none 1 to 2 years employment: 10 days salary 2 to 5 years employment: 15 days salary Above 5 years employment: 20 days salary |
| Probationary period | 3 – 6 months recommended |
| Termination notice period | 0 to 2 years employment: 4 weeks notice required 2 to 5 years employment: 6 weeks notice required >5 years employment: 8 weeks notice required |
| Severance | 0 to 1 year employment: none 1 to 2 years employment: 10 days salary 2 to 5 years employment: 15 days salary Above 5 years employment: 20 days salary |
The standard work week in Malaysia is 40 hours, with employees generally working eight hours per workday. Business hours of operation are typically from 9am to 5pm – Monday through Friday. For every six days that an employee works, he/she must receive one rest day. During an employee’s rest day, they are prohibited from working.
Employees in Malaysia should not work more than 48 hours per week. Any requested time in excess of 48 hours is payable at a rate that is 1.5x the employee’s base salary.
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