Hire employees in Malaysia, hassle-free

With Deel, your business can easily hire employees in Malaysia. No more worrying about local laws, complex tax systems, or managing international payroll. Deel takes care of everything in 150+ countries.

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Employee - Malaysia

Hire employees in Malaysia No entity needed.

Usually, to hire in Malaysia,  your business needs an entity. That means a local office, an address registered as a subsidiary, and an account with a local bank. All of this, plus navigating regional benefits, payroll, tax, and HR laws, can take months. 

Malaysia also treats contractors differently than full-time employees, so misclassifying a contractor could lead to fines. Deel lets you hire employees in Malaysia quickly, easily, and compliantly. We even automate tax document collection, payroll, benefits, and more.

All the necessary benefits for Malaysia built right in

Deel allows you to provide localized benefits for employees in Malaysia within minutes. All in one manageable online dashboard.

  • Health Insurance
  • Pension
  • Worker Compensation Insurance


    Speak to our team about how to compliantly hire in Malaysia

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    Quick Overview

    Currency: Ringgit (RM)

    Capital: Kuala Lumpur

    Official language: Malay

    Payroll Cycle: Monthly

    Statutory Holidays

    Paid Time Off

    In Malaysia, employees are entitled to paid holidays based on the length of the labor relationship:

    • Up to 2 years of employment - 8 days of paid leave
    • 2 - 5 years of employment - 12 days of paid leave
    • 5+ years of employment - 16 days of paid leave

    Public Holidays

    Public Holidays highly varies and there is a minimum of 11 days. Some public holidays only apply to certain regions.

    • New Year’s Day
    • Thaipusam
    • Federal Territory Day
    • Merdeka Day
    • Malaysia Day
    • Christmas Day
    • Prophet Muhammad’s Birthday
    • Agong's Birthday
    • Chinese New Year

    General Taxation

    Individual Income Tax

    The average ranges up to 30% and will depend on many variables, such as marital status, level of income among others.

    Employer Cost

    Approximately, 14% - 15% of employee salary

    Additional information

    Employment Contract Details

    Contracts must be in writing and should include a termination clause. Agreements can be in English and should describe the position offered, place of work, basic wage, working hours, among others.

    Probation Period

    There is not mandatory period, however common practice is between 3 to 6 months.

    Minimum Wage Requirements

    The monthly minimum wage is RM 1,200.

    Maximum working hours and overtime

    Standard working hours is from Monday to Friday, 8 hours per day and 40 hours per week. Standard daily hours is from 9am to 1pm and 2pm to 6pm.

    Parental Leave

    • Maternity Leave: employees are entitled to paid leave for a minimum of 2 months if they have been employed for the last 4 months and have worked for the same employer for at least 3 months in the 9 months prior to childbirth. Maternity leave is paid by the employer, and the employee will receive full salary during this leave.
    • Paternity Leave: employers are not required to provide paternity leave. However, is common practice to grant at least 3 working days of leave.

    Sick Leave

    Employees are entitled to 2 months of hospitalization leave per year. A medical certificate is required under all circumstances. Sick leave is paid by the employer as a 100% of the salary.

    If hospitalization is not required the amount of sick leave days will depend on the length of employment, which ranges from 14 to 22 days:

    • Less than 2 years of employment - 14 days of sick leave
    • Between 2 and 5 years of employment - 18 days of sick leave
    • More than 5 years of employment - 22 days of sick leave

    Termination requirements for employees in

    Severance pay will depend on the reasons for dismissal or employment termination. Court case due to unfair dismissal may lead to payment of 24 months of salary.

    Notice Period

    In Malaysia, the notice period is based on the length of the labor relationship:

    • Up to 2 years of employment - 4 weeks’ notice
    • 2 - 5 years of employment - 6 weeks’ notice
    • 5+ years of employment - 8 weeks’ notice

    However, it is common practice to give more than 2 months' notice.

    Employees must resign with 1 month's notice.

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    “Deel is an amazing platform! It's super intuitive and user friendly, plus it runs suuuuper smoothly!! It has great options for paying and withdrawing money, plus it helps you keep super organized with your spending. They also have great support and are super friendly with all the questions you might have :D I would definitely recommend it!!”

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    Nov 20, 2020
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    Dec 3, 2020
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    "The Deel platform has been super effective for my team and I and has enabled us to bring on workers globally. The platform allows us to onboard individuals seamlessly and with no issues at all. Highly recommend."

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    Oct 28, 2020
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    Terrific service

    "Great service, amazing customer care, terrific platform, both for the company and for the contractors/employees. Saving everyone's time and money"

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    Dec 15, 2020
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    Nov 16, 2020
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    Jan 29, 2021