Employer of Record (EOR) Services in Malaysia
Hire Employees in Malaysia Without Setting Up a Company
Expand into Malaysia and hire local employees without first establishing your own Malaysian entity.
FastLaneRecruit’s Employer of Record (EOR) services in Malaysia enable international companies to hire, onboard, manage and pay employees compliantly while we act as the local legal employer.
You continue to manage your employees’ day-to-day responsibilities, performance and business priorities. FastLaneRecruit handles employment contracts, payroll, statutory contributions, tax deductions, benefits administration, HR compliance and employee offboarding.
Whether you are hiring your first employee in Malaysia, building a remote team or testing the Malaysian market before incorporating, our Malaysia EOR services provide a faster route to market without the administrative burden of establishing and maintaining a local company.
What Is an Employer of Record (EOR) in Malaysia?
An Employer of Record, commonly known as an EOR, is a local organisation that legally employs workers on behalf of another company.
Under an EOR arrangement, FastLaneRecruit becomes the legal employer of your Malaysian employees for employment and administrative purposes. Your company continues to direct their actual work, responsibilities, targets and performance.
FastLaneRecruit manages the local employment obligations surrounding the relationship, including compliant employment documentation, payroll, EPF, SOCSO, EIS, monthly tax deductions, employee benefits and HR administration.
This allows a foreign company to build a team in Malaysia without first incorporating a local entity.
When Should You Use EOR Services in Malaysia?
A Malaysia EOR can be particularly useful when your business wants to enter the market quickly but is not yet ready to establish a local company.
Common situations include:
- Hiring your first employee in Malaysia — employ local talent before establishing a Malaysian entity.
- Testing the Malaysian market — validate demand and build an initial team before committing to incorporation.
- Building a remote Malaysian team — hire employees who work for your regional or international operations.
- Expanding while incorporation is underway — begin hiring while your long-term Malaysia structure is being established.
- Relocating or hiring regional talent — manage compliant Malaysian employment and payroll requirements locally.
- Running project-based operations — build a Malaysian team without immediately creating permanent local infrastructure.
An EOR gives your business a practical way to establish an initial workforce while reducing the administrative complexity of entering a new market.
Malaysian Employment Laws Snapshot
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.
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 |
When Is an EOR Not the Right Solution?
An Employer of Record is not necessarily the best structure for every company.
As your Malaysian operation becomes larger or more permanent, establishing your own local entity may offer greater long-term control.
A Malaysian company may be more appropriate when your business needs to enter local contracts directly, obtain licences in its own name, operate substantial permanent activities in Malaysia, build a large long-term workforce or maintain its own internal payroll and HR infrastructure.
FastLaneRecruit can help you evaluate the practical differences between using an EOR and establishing a local company based on your hiring plans and expansion objectives throughout the employee lifecycle.
What Our Malaysia EOR Services Include
When you hire through FastLaneRecruit’s Employer of Record services in Malaysia, we manage the employment administration required throughout the employee lifecycle.
Employment & Onboarding
We prepare locally compliant employment documentation, coordinate onboarding, collect employee information and establish the employee under the appropriate local employment structure.
Payroll Administration
FastLaneRecruit processes monthly payroll, prepares payslips, coordinates salary disbursement and manages the required payroll calculations.
EPF, SOCSO & EIS
We calculate and administer applicable statutory contributions, including EPF, SOCSO and EIS, based on the relevant statutory requirements and employee profile.
Monthly Tax Deductions
Applicable PCB or Monthly Tax Deduction requirements are calculated and administered as part of payroll.
Employee Benefits
We coordinate agreed employee benefits and support the administration required throughout employment.
Leave & HR Administration
Our local team supports employee records, leave administration and day-to-day employment matters.
Employment Pass Support
For eligible expatriate employees, FastLaneRecruit can assist with relevant employment and immigration processes, subject to applicable requirements and approvals.
Employee Offboarding
When an employment relationship ends, we support the required documentation, final payroll and compliant offboarding process.
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.
How Much Do EOR Services Cost in Malaysia?
FastLaneRecruit offers transparent Malaysia EOR pricing on a per-employee basis.
One-Time Setup Fee (per employee)
The setup fee covers the initial employment setup, statutory platform enrolment and compliance review.
USD 369
Monthly Service Fee (per employee)
The monthly EOR fee includes payroll processing, statutory contribution calculations, payslips, salary disbursement and ongoing employment administration.
USD 259 per month
Actual costs may vary depending on the employee profile, selected benefits, immigration requirements and employment complexity.
Input Assumptions
Cost Breakdown
Hiring in Australia
Hiring in Malaysia via EOR
Malaysia Employee Deductions
Malaysia Statutory Summary
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 |
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.
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.
An Employer of Record is a local organisation that legally employs workers on behalf of another company. The EOR manages employment administration and local compliance while the client company directs the employee’s day-to-day work.
An EOR can provide a structure for foreign companies to employ Malaysian workers without first establishing their own local entity, subject to the circumstances of the employment arrangement and applicable requirements.
FastLaneRecruit’s Malaysia EOR service can include employment documentation, onboarding, payroll processing, statutory contributions, applicable tax deductions, benefits administration, HR support and employee offboarding.
FastLaneRecruit’s pricing currently starts with a USD369 one-time setup fee and USD259 monthly service fee per employee. Additional costs may apply depending on benefits, immigration requirements and employment complexity.
Timing depends on documentation, employee circumstances and any immigration requirements. For straightforward local hires, an EOR can generally enable significantly faster hiring than establishing a new company solely to employ staff.
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