Employer of Record Malaysia
Hire Employees in Malaysia Without Setting Up a Company
Expand into Malaysia quickly and compliantly with FastLaneRecruit’s Employer of Record (EOR) services.
As your local employer of record in Malaysia, we legally hire employees on your behalf while you retain full control over their day-to-day work. We handle employment contracts, onboarding, payroll processing, statutory contributions, tax compliance, benefits administration, and employee offboarding.
Whether you’re hiring your first employee in Kuala Lumpur or building a distributed team across Malaysia, FastLaneRecruit helps you enter the market without the cost and complexity of establishing a local company.
Why Use an Employer of Record in Malaysia?
Malaysia is one of Southeast Asia’s leading business hubs, offering a highly skilled workforce, competitive labour costs, strong English proficiency, and a strategic location for regional expansion.
However, employers must comply with local employment regulations, statutory payroll requirements, and immigration rules. Setting up a local entity can take weeks and requires ongoing administrative and compliance obligations.
With FastLaneRecruit’s EOR Malaysia solution, you can:
- Hire employees without establishing a Malaysian entity
- Onboard talent within days instead of months
- Stay compliant with Malaysian labour laws
- Manage EPF, SOCSO, EIS, and payroll tax requirements
- Sponsor eligible expatriate employees
- Scale your workforce quickly and efficiently
Malaysian Employment Laws Snapshot
Hing 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.
Below is a summary of the key statutory obligations employers must comply with:
Key Employment Regulations in Malaysia
| CategoryCategory | Key Details |
| 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) |
| 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 |
| Hospitalisation Leave | Up to 60 days |
| Sick Leave | < 2 years: 14 days 2–5 years: 18 days > 5 years: 22 days |
| Maternity Leave | 98 consecutive days |
| Paternity Leave | 7 consecutive days |
| Public Holidays | Minimum 11 gazetted public holidays per year (5 compulsory national holidays) |
| Overtime Limit | Maximum 104 hours per month |
EPF, SOCSO & EIS Contributions in Malaysia
Employers in Malaysia are required to make statutory contributions on behalf of eligible employees. FastLaneRecruit manages all statutory calculations, filings, and submissions to ensure full compliance with Malaysian payroll regulations. 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
| Contribution Type | Employer | Employee |
| EPF (Employees Provident Fund) | 13% (salary ≤ RM5,000) 12% (salary > RM5,000) | 11% |
| SOCSO | Based on contribution schedule | Based on contribution schedule |
| EIS | 0.20% | 0.20% |
| PCB (Monthly Tax Deduction) | Withheld and remitted by employer | Based on taxable income |
What FastLaneRecruit Handles
When you hire through our Employer of Record Malaysia service, we manage:
- Locally compliant employment contracts
- Employee onboarding and documentation
- Payroll processing
- EPF, SOCSO and EIS contributions
- Monthly tax deductions (PCB)
- Leave and attendance administration
- Employee benefits administration
- HR support and employee relations
- Employment Pass support for eligible expatriates
- Employee offboarding and termination management
You focus on managing performance and business growth while we handle employment compliance.
EOR vs Setting Up a Company in Malaysia
| Feature | Employer of Record | Local Entity |
| Time to Hire | 1–2 weeks | 1–4 months |
| Company Setup Costs | Not Required | High |
| Payroll Compliance | Managed by FastLaneRecruit | Managed internally |
| Employment Contracts | Included | Self-managed |
| Statutory Contributions | Included | Self-managed |
| Tax Registration | Not Required | Required |
| HR Administration | Included | Self-managed |
| Local Director Required | Not Required | Yes |
| Risk Exposure | Transferred to EOR | Fully yours |
| Best For | Market entry, remote hiring, small teams | Long-term local operations |
For businesses testing the Malaysian market or hiring fewer than 20–30 employees, an EOR is often the fastest and most cost-effective solution.
Employment Pass & Expatriate Hiring Support
Malaysia allows foreign professionals to work under various work pass categories, including the Employment Pass.
FastLaneRecruit can assist with:
- Employment Pass sponsorship support
- Immigration documentation guidance
- Payroll compliance for expatriates
- Onboarding and relocation coordination
Our local team helps employers navigate Malaysia’s immigration requirements while maintaining compliance throughout the employee lifecycle.
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.
How Our Employer of Record Service Works
1
Step 1: Select Your Candidate
You identify the employee you want to hire.
2
Step 2: Employment Contract Setup
FastLaneRecruit prepares compliant employment contracts and onboarding documents.
3
Step 3: Employee Onboarding
We onboard your employee and manage all local employment requirements.
4
Step 4: Payroll & Statutory Contributions
We process payroll, EPF, SOCSO, EIS, PCB deductions, and employee benefits.
5
Step 5: Ongoing Compliance Support
We manage statutory filings, HR administration, and ongoing employment compliance.
Why Choose FastLaneRecruit as Your Malaysia EOR Partner?
Local Expertise
We understand Malaysia’s employment regulations, payroll requirements, and workforce expectations.
Compliance First
Our team ensures full compliance with Malaysian labour laws and statutory requirements.
Faster Market Entry
Hire employees in Malaysia without waiting to establish a local company.
Regional Expansion Support
Expand beyond Malaysia with support across Asia through a single partner.
Dedicated HR & Payroll Specialists
Receive ongoing support from experienced local employment professionals.
Input Assumptions
Cost Breakdown
Hiring in Australia
Hiring in Malaysia via EOR
Malaysia Employee Deductions
Malaysia Statutory Summary
Yes. Through an Employer of Record, a foreign company can legally hire employees in Malaysia without establishing a local business entity.
Employers may need to contribute to EPF, SOCSO, and EIS, while also managing monthly tax deductions (PCB) for employees.
We calculate payroll, process salaries, manage statutory contributions, submit required filings, and ensure compliance with local regulations.
The statutory minimum notice period ranges from 4 to 8 weeks depending on the employee’s length of service, unless otherwise agreed in the employment contract.
Yes. Eligible expatriates may be hired through an EOR arrangement, subject to immigration and work pass requirements.
Ready to Hire in Malaysia?
Build your team in Malaysia without establishing a local company.
FastLaneRecruit handles employment, payroll, compliance, and HR administration so you can focus on growing your business.
Book a Free Call with Our EOR Specialist