Employer of Record Malaysia (EOR Services)
Hire Employees in Malaysia in Days
Fully compliant. No local entity required. Zero legal complexity.
FastLaneRecruit enables global companies to legally hire employees in Malaysia without incorporating a local Sdn Bhd. As your Employer of Record (EOR) partner, we manage employment contracts, payroll processing, tax filings, EPF, SOCSO, and EIS contributions in full compliance with Malaysian employment laws while you retain complete control over your team’s day-to-day work and performance.
Beyond standard EOR support, FastLaneRecruit specializes in helping global companies build and scale dedicated teams in Malaysia.
Employer Testimonials
Fastlane has been an incredible partner in helping us move quickly to find and onboard great talent. The team understands our needs, acts fast, and makes the whole process seamless. Highly recommended.
Fastlane is a very professional firm with capable people and understands what we need as a firm. Besides attracting top talent, the process is smooth, transparent and is appropriated priced. Thanks!
Efficient and expert! Fastlane Malaysia’s talent recruitment and EOR services are integral to our corporate success.
Thanks to FastlaneRecruit, we found exceptional talents whom align well with our company needs. Their attention to our specific needs resulted in a smooth and successful hiring process. We are grateful for their professionalism and expertise throughout the entire process.
Employer Testimonials
Fastlane has been an incredible partner in helping us move quickly to find and onboard great talent. The team understands our needs, acts fast, and makes the whole process seamless. Highly recommended.
Fastlane is a very professional firm with capable people and understands what we need as a firm. Besides attracting top talent, the process is smooth, transparent and is appropriated priced. Thanks!
Efficient and expert! Fastlane Malaysia’s talent recruitment and EOR services are integral to our corporate success.
Thanks to FastlaneRecruit, we found exceptional talents whom align well with our company needs. Their attention to our specific needs resulted in a smooth and successful hiring process. We are grateful for their professionalism and expertise throughout the entire process.
What is an Employer of Record in Malaysia?
An Employer of Record (EOR) in Malaysia is a third-party organization that legally employs staff on behalf of a foreign or local company. While you manage the employee’s role and responsibilities, the EOR becomes the legal employer for statutory, payroll, and compliance purposes.
This allows companies to:
Hire employees in Malaysia without registering a local entity
Avoid the complexity of Malaysian employment laws
Ensure full compliance with the Employment Act 1955
Reduce expansion time from months to days
With an EOR, you can enter the Malaysian market quickly, compliantly, and cost-effectively.
Book a Free 30-Minute Discovery CallWhy Expand into Malaysia?
Strategic Gateway to ASEAN
Malaysia offers direct access to the 600+ million ASEAN market, strong infrastructure, and a central location for managing Southeast Asian operations efficiently.
Skilled, Multilingual Workforce
Benefit from a highly educated, English-speaking talent pool across technology, finance, shared services, and digital industries.
Competitive Labor & Operating Costs
Enjoy lower salary benchmarks and operating expenses compared to other regional hubs while maintaining strong talent quality.
How Employer of Record Works in Malaysia
You choose your preferred candidate (or we help source one) in Malaysia.
We prepare a locally compliant employment contract aligned with Malaysian employment laws.
We register the employee for the required statutory programs in Malaysia:
- EPF (Employees Provident Fund)
- SOCSO (Social Security Organization)
- EIS (Employment Insurance System)
- PCB (Monthly Tax Deduction)
We manage ongoing payroll and benefits administration in Malaysia, including:
- Compliance reporting
- Salary disbursement
- Statutory deductions
- Tax filings
- Leave tracking
We provide continuous HR and compliance support in Malaysia, including:
- Regulatory updates
- Contract amendments
- Terminations
- Government filings
Malaysian Employment Laws You Must Know
Hiring employees in Malaysia requires strict compliance with statutory employment regulations, payroll obligations, and tax reporting requirements. Non-compliance may result in financial penalties, back payments, or legal disputes.
Our Employer of Record services ensure full adherence to:
- Employment Act 1955
- EPF (Employees Provident Fund) regulations
- SOCSO & EIS contribution requirements
- PCB (Monthly Tax Deduction) tax filings
Below is a summary of the key statutory obligations employers must comply with:
Key Employment Regulations in Malaysia
| Category | Key Details (Updated 2025) |
| Minimum Wage | RM 1,700 per month (Minimum Wages Order 2024; phased from 1 Feb 2025, fully applicable to all employers from 1 Aug 2025) |
| Working Hours | Maximum 45 hours per week (Employment (Amendment) Act 2022) |
| Overtime – Normal Working Day | Minimum 1.5× hourly rate |
| Overtime – Rest Day | Minimum 2.0× hourly rate (if exceeding normal hours) |
| Overtime – Public Holiday | Minimum 3.0× hourly rate (if exceeding normal hours) |
| EPF (Employees Provident Fund) | Employer: 13% (if wages ≤ RM5,000) Employer: 12% (if wages > RM5,000) Employee: 11% |
| SOCSO (Employment Injury & Invalidity Scheme) | Employer & employee contributions based on salary scale (capped at statutory wage ceiling) |
| EIS (Employment Insurance System) | Employer: 0.2% Employee: 0.2% (subject to contribution ceiling) |
| PCB (Monthly Tax Deduction) | Employers must deduct monthly income tax and remit to LHDN |
| Probation Period | Not fixed by statute; typically 3–6 months (market practice) |
| Termination Notice (Employment Act 1955) | < 2 years: 4 weeks 2–5 years: 6 weeks > 5 years: 8 weeks |
| Annual Leave Entitlement | < 2 years: 8 days 2–5 years: 12 days > 5 years: 16 days |
| Public Holidays | Minimum 11 gazetted public holidays per year (5 compulsory national holidays) |
Failure to comply can result in penalties, fines, or legal exposure — risks we fully mitigate as your EOR partner.
Employer of Record vs Setting Up a Company in Malaysia
| Factor | Employer of Record | Setting Up Sdn Bhd |
| Time to Hire | 1–2 weeks | 2–4 months |
| Local Director Required | No | Yes |
| Company Setup Costs | None | High |
| Ongoing Compliance | Included | Managed internally |
| Risk Exposure | Transferred to EOR | Fully yours |
If you want to test the Malaysian market or hire quickly, EOR is often the smarter first step.
How Much Does Employer of Record Cost in Malaysia?
Our Employer of Record (EOR) pricing in Malaysia is structured on a transparent per-employee basis.
One-Time Setup Fee (per employee)
Includes statutory platform enrolment and compliance review.
USD 369
Monthly Service Fee (per employee)
Includes payroll processing, statutory contribution calculations, payslips, and salary disbursement.
USD 259 per month
Actual fees may vary depending on employee profile, benefits selection, and employment complexity.
Contact us for a tailored Malaysia EOR pricing estimate.
Why Choose FastLaneRecruit as Your Malaysia EOR Partner?
Rapid Onboarding
Employees can be onboarded in just a few days.
Full Legal Compliance
We ensure compliance with: Employment Act 1955, EPF Act, SOCSO Act, EIS regulations and Income Tax Act.
End-to-End Payroll Management
Accurate salary processing including statutory deductions and reporting.
Local HR Expertise
Our Malaysia-based HR professionals understand local labor practices and compliance nuances.
Risk Mitigation
We absorb the legal employment risk, protecting your company from compliance exposure.
Who Uses Employer of Record Services in Malaysia?
Our EOR solutions are ideal for:
Foreign companies expanding into Malaysia
Tech startups hiring remote teams
Companies testing the Malaysian market
Organizations hiring expatriates
Businesses avoiding permanent establishment risk
Book A Free 30 mins Discovery CallInput Assumptions
Cost Breakdown
Hiring in Australia
Hiring in Malaysia via EOR
Malaysia Employee Deductions
Malaysia Statutory Summary
Hire Your First Employee in Malaysia Today
Expand into Malaysia confidently without entity setup, compliance risk, or administrative burden.
FastLaneRecruit handles contracts, payroll, statutory contributions, tax filings, and HR administration so you can focus on growing your business.
Book Your Free 30-Minute Discovery Call Today
Frequently Asked Questions About Employer of Record in Malaysia
What is an Employer of Record (EOR) in Malaysia?
An Employer of Record in Malaysia is a third-party organization that legally employs staff on your behalf. While you manage the employee’s daily work, the EOR handles payroll, statutory contributions, employment contracts, and compliance with Malaysian employment laws.
Is Employer of Record legal in Malaysia?
Yes. Employer of Record services are fully legal when structured in compliance with Malaysian employment and tax regulations, including the Employment Act 1955 and statutory contribution requirements.
Can a foreign company hire employees in Malaysia without setting up a company?
Yes. An EOR allows foreign companies to hire employees in Malaysia without incorporating a local entity, avoiding the need for company registration, local directors, and ongoing corporate compliance.
How long does it take to onboard an employee through an EOR in Malaysia?
Onboarding typically takes between 3 to 10 working days, depending on documentation, statutory registrations, and employment contract finalization.
How much does Employer of Record cost in Malaysia?
EOR services are generally priced on a per-employee-per-month basis. Costs depend on salary level, benefits structure, visa requirements, and payroll complexity. Contact us for a customized quote.
What statutory contributions must employers pay in Malaysia?
Employers must contribute to:
- EPF (Employees Provident Fund)
- SOCSO (Social Security Organization)
- EIS (Employment Insurance System)
They must also manage PCB (Monthly Tax Deduction) for income tax.
What are the employer EPF contribution rates in Malaysia?
Employers contribute 13% if wages are RM5,000 or below, and 12% if wages exceed RM5,000. Employees contribute 11% of monthly wages.
Can an Employer of Record sponsor Employment Pass or work visas in Malaysia?
Yes. An EOR can assist with Employment Pass applications and visa sponsorship, subject to eligibility criteria and regulatory approval.
What is permanent establishment (PE) risk in Malaysia?
Permanent establishment risk arises when a foreign company’s activities create a taxable presence in Malaysia. Using an EOR can help mitigate this risk by structuring employment compliantly.
What employee benefits are mandatory in Malaysia?
Mandatory benefits include statutory contributions (EPF, SOCSO, EIS), paid annual leave, public holidays, sick leave, and overtime pay as required under the Employment Act 1955.
Can an EOR handle employee termination in Malaysia?
Yes. An EOR ensures that termination processes comply with Malaysian employment laws including notice periods, final salary payments, and statutory obligations.
Do I need a Malaysian bank account to hire through an EOR?
No. The EOR manages payroll disbursement and statutory payments locally, so you do not need to open a Malaysian corporate bank account.
What is the difference between EOR and setting up a Sdn Bhd in Malaysia?
Setting up a Sdn Bhd requires company registration, local directors, corporate filings, and ongoing tax compliance. An EOR allows you to hire immediately without entity setup or long-term administrative obligations.
Can I hire contractors instead of employees in Malaysia?
Yes, but contractor arrangements must be structured carefully to avoid misclassification risks. An EOR can advise whether employment or contractor engagement is more appropriate.
Why choose an Employer of Record instead of managing payroll internally?
Managing payroll internally requires local compliance expertise, statutory registrations, and ongoing reporting. An EOR centralizes these responsibilities, reduces compliance risk, and accelerates market entry.
