|VAT||6% standard rate|
Employer of record Services
TopSource offers complete payroll, EOR and contractor management services for Malaysia. TopSource provides Employer of Record services to global companies establishing a presence in Malaysia that do not wish to be burdened with the complications of Malaysia employment regulations.
TopSource serves as an outsourced Global Employment Solutions provider. We provide comprehensive employment services such as payroll, payroll related compliances, leave and attendance administration, HR management, and assistance with employer compliances.
If you have an established presence in Malaysia, our payroll bureau services are available. But if you are seeking to avoid the complications of a subsidiary—or wish to establish a presence quickly an convert to a subsidiary later—our EOR service is ready to support you today.
Services we offer
|• Payroll bureau solutions for your Malaysian entity|
|• Employment solutions/leasing||• Providing documents associated with employment|
|• Employee on-boarding process and documentation||• Monthly salary calculation|
|• Salary disbursement to employee’s account||• Pay slip generation (If applicable)|
|• Employee statutory benefits administration and deduction|
|• Foreign exchange and money transfer services for payment of employees and 3rd parties|
Company formation in Malaysia
We can help with company registration, company incorporation along with all the necessary documentation in Malaysia. We can also assist foreign companies to smoothly setup a company anywhere in Malaysia.
- Minimum Wage
The minimum wage is RM1050 monthly.
Employer 12.00% – 13.00% – EPF (Retirement Benefits) 1.75% – Socso – Disability Benefits 0.05% – 7.90% – EIS (Employment Insurance) Employee 11.00% – 5.50% – EPF (Retirement Benefits) 0.50% – Socso – Disability Benefits 0.00% – Up to 5,000 1.00% – 5,000 – 20,0000 3.00% – 20,000 – 35,000 8.00% – 35,000 – 50,000 14.00% – 50,000 – 70,000 21.00% – 70,000 – 100,000 24.00% – 100,000 – 250,000 24.50% – 250,000 – 400,000 25.00% – 400,000 – 600,000 26.00% – 600,000 – 1,000,000 28.00% – Over 1,000,000
Working HoursFulltime employment is considered 48 hours weekly, and 8 hours daily.
Maximum overtime hours monthly is 104. Overtime is paid at 150% for normal workdays, 200% on rest days, 300% on public holidays.
Vacation DaysEmployees of less than 2 years receive 8 days leave annually, from 2-5 years receive 12 days, and after 5 years entitlement is 16 days.
Maternity/Paternity LeaveMaternity leave: Women are entitled to 60 days maternity leave.
Paternity Leave: No specific laws.
Sick daysEmployees of under two years receive 14 days sick leave. From 2-5 workers receive 18 days, and from the 5th year forward receive 22 days leave. Employees who have been hospitalized are entitled to 60 days leave.
Pension/Social SecurityPension: Employers contribute 12% of employees’ wages. Employee contribute 11% of their wages.
Social Security: 0.5% of monthly payroll, according to 24 wage classes. There are no minimum monthly earnings used to calculate contributions (for the lowest wage class of under 30 ringgits, the contribution is based on 20 ringgits). The maximum monthly earnings used to calculate contributions are 3,000 ringgits.
Termination/SeveranceEmployers must provide four weeks’ notice for employees of up to two years; six weeks’ notice for employees of two to five years; eight weeks notices for employees of five or more years.
Severance payments depend on length of employment, 1-2 years: 10 days wage for every year; 2-5 years: 15 days wage for every year; 5+ years: 20 days wage for every year.