Employer of Record
Malaysia's Employment Act 1955, as amended in 2022, sets written terms for Peninsular Malaysia and Labuan; Sabah and Sarawak apply their own separate labour ordinances. Hiring also triggers EPF registration within 7 days and PERKESO (SOCSO) registration generally within 30 days, with contribution rates and coverage varying by the employee's age, citizenship and category. Share the role and work state, and PIO confirms the arrangement.
Practical points to line up before you hire in Malaysia.
Malaysia's Employment Act 1955, as amended in 2022, sets the statutory baseline for written employment terms, working hours and other core conditions across Peninsular Malaysia and the Federal Territory of Labuan; Sabah and Sarawak apply their own separate labour ordinances.
Source:Employment Act 1955Employment (Amendment) Act 2022 (Act A1651)
Employers must register with the Employees Provident Fund within 7 days of hiring their first employee, then contribute alongside the employee toward retirement savings. Contribution rates and coverage depend on the employee's age, citizenship or residency status and worker category, so plan this into the cost of employment from day one.
Source:Mandatory Contribution
Employers also register with the Social Security Organisation (SOCSO/PERKESO) — generally within 30 days of hiring their first employee — a separate registration and deadline from EPF, covering employment injury and invalidity protection. Coverage and contribution rates depend on the employee's age, citizenship and worker category.
Malaysian payroll runs on monthly tax deduction (PCB) administered by the national tax authority, with a new hire's income documented accurately from day one — including any Form TP3 declaration of prior earnings. We help keep this administration on track.
Once your hire is confirmed, here's what we help you coordinate.
You stay in control of the decisions that are yours to make.
A straightforward path from sign-up to your employee's first day.
Share the role, the work location and your target start date, and we'll confirm the available arrangement for that hire.
Once confirmed, we help coordinate the information, contract and payroll setup needed within your arrangement.
You manage the day-to-day relationship; we help coordinate the recurring administration within your arrangement.
A different one. The Employment Act 1955, as amended in 2022, sets statutory terms only for Peninsular Malaysia and the Federal Territory of Labuan — Sabah and Sarawak each apply their own separate labour ordinance. Before we confirm contract terms, tell us the actual state where the employee will work.
Source:Employment Act 1955Employment (Amendment) Act 2022 (Act A1651)
Possibly. If the employee earned income elsewhere earlier in the year, Form TP3 lets them declare it so monthly tax withholding (PCB) is calculated on the right cumulative figure from the start. We help you collect that declaration and get it filed before the first pay run.
Two separate deadlines. EPF employer registration is due within 7 days of hiring your first employee, while PERKESO (SOCSO) employer and employee registration is generally due within 30 days. Contribution rates and coverage depend on the employee's age, citizenship or residency status, worker category and any statutory exclusions — we help confirm both registrations and the applicable rates before payroll starts.
Source:Mandatory ContributionEmployer RegistrationContributions
A documented retrenchment and notice process set out by the Department of Labour, including how affected employees and the authorities are informed. We help you plan an exit that keeps the paperwork aligned with that practice — exact notice periods and terms stay governed by the employment contract.
Source:Employees' Retrenchment
Yes — sign up to confirm the role, the candidate and the country details, and we'll confirm the available arrangement for your hire, including how the contract, payroll and statutory contributions are handled.
You provide the role details, compensation and any company-specific policies, plus final approval on the offer. We coordinate the local paperwork and payroll setup around what you decide.
Practical guidance is grounded in these official references, but local law and public requirements can change and should be reconfirmed. Your PIO contract and quote govern only PIO's service scope, terms and fees.
Sign up to start an EOR hire in Malaysia. Share the role, the work location and your target start date, and we'll confirm the available arrangement — or book a demo first to talk it through with our team.
