- Country Guide
- Malaysia
Malaysia
Last Update by , 29 Apr 2025
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Exchange Rate
21 Oct 2025
Cost of Living
Indicative value for a working adult in a city: Kuala Lumpur
Publicly available data (Numbeo, etc..), verified by Marco’s in-country staff
Living Requirement | Indicative Amount (MYR) |
---|---|
McDonalds Set Meal | 20 |
Monthly Train and Bus Tickets | 50 |
3 Bedrooms Rental (City Center) | 4,964 |
3 Bedrooms Rental (Outskirt) | 2,712 |
Current Inflation Rate
2.4%
Wage
Minimum Wages
- MYR1,700 per month (depends on the states/regions)
Median Salary
Estimated based on general positions such as HR, Accounting, Admin roles, in tier one cities.
Job Level | Monthly Salary (MYR) |
---|---|
Entry-Level
Fresh Graduate
|
2,500 |
Mid-Level
5 Years
|
4,500 |
Experienced & Managerial Level
10 Years
|
7,000 |
Specialized & Senior-Level
15 Years
|
10,000 |
Annual Salary Growth
5%
Statutory Contribution
Country Level
Type | Employer Rates | Employee Rates | Notes |
---|---|---|---|
Employees Provident Fund (EPF) |
- 13% (for salaries below MYR 5,000) - 12% (for salaries above MYR 5,000) |
11% | All staff |
Injury and Invalidity Scheme (SOCSO) | 1.75%, capped at MYR 104.15 | 0.5%, capped at MYR 29.75 | All local staff and expats, salary up to MYR 6,000 |
Employment Insurance System (EIS) | 0.2%, capped at MYR11.90 | 0.2%, capped at MYR11.90 | All staff and permanent residents aged 18-60, salary capped at MYR6,000 |
Human Resource Development Fund (HRDF) | 1% | - | All staff, required for companies with over 10 staff who are citizens |
Invalidity Scheme (PERKESCO) |
- 1.75% for under 60 years old - 1.25% for above 60 years old - 1.25% for foreign workers |
- 0.05% for under 60 years old. - 0% for above 60 years old and for foreign workers. |
All staff and expats |
Other Benefit
Other common employment benefits in Malaysia include:
- 13th month salary paid at the end of the year
- Hospitalization, Surgical and Medical Benefits: Approximately MYR230 per month.
Income Tax
Residents
-
Tax Period: 1 Jan - 31 Dec of the previous year
Tax filing start date: 1 Mar of the following year
Tax filing due date: 15 May of the following year
Country Level
Taxable Income | Rate |
---|---|
5,000 – 20,000 | 1% |
20,000 – 35,000 | 3% |
35,000 – 50,000 | 6% |
50,000 – 70,000 | 11% |
70,000 – 100,000 | 19% |
100,000 – 400,000 | 25% |
400,000 – 600,000 | 26% |
600,000 – 2,000,000 | 28% |
Over 2,000,000 | 30% |
Non-residents
- Flat rate: 30%
Working Hours
Statutory
45 hours
8 hours Monday to Friday, 5 hours on Saturday
Typical practice
Monday to Friday, 9 am to 6 pm
Overtime
No more than 104 hours per month
- Workdays: 150% of basic salary
- Weekends: 200% of basic salary
- Public Holidays: 300% of basic salary
Employment Contract
Permanent
Contract Format
Must be in writing, in English or Bahasa Malaysia (the official language for public service).
Payroll Currency
MYR
Probation
Typical practice 3-6 months
Contract Period
No minimum duration
Termination
Refer to the employment contract signed
Voluntary Resignation | Involuntary Termination | Economic Layoff | |
---|---|---|---|
Notice Period - Probation | 1 day to 30 days as per contract signed | 30 days | 30 days |
Notice Period - Regular | 30 days | 0 -2 years' service: 4 weeks 2 - 5 years' service: 6 weeks Over 5 years' service: 8 weeks | 0 -2 years' service: 4 weeks 2 - 5 years' service: 6 weeks Over 5 years' service: 8 weeks |
Severance Pay | Not Applicable | For at least 12 months. Calculated as: 1/2-month salary for each year of service (pro-rated for partial years) | For at least 12 months. Calculated as: 1/2-month salary for each year of service (pro-rated for partial years) |
Public Holiday
11 days
Holidays that fall on weekends are observed the Monday after
Country Level
Date | Name |
---|---|
31 Mar - 02 Apr | Hari Raya Puasa |
01 May | Labor Day |
12 May | Wesak Day |
02 Jun | The Yang di-Pertuan Agong's Birthday |
07 Jun | Hari Raya Haji |
27 Jun | Awal Muharram |
31 Aug - 01 Sep | Malaysia's National Day |
05 Sep - 07 Sep | The Prophet Muhammad's Birthday |
15 Sep - 16 Sep | Malaysia Day |
20 Oct | Deepavali |
25 Dec | Christmas Day |
State/Province Level
Wilayah Persekutuan Putrajaya
Date | Name |
---|---|
01 Jan | New Year's Day |
29 Jan - 30 Jan | Chinese New Year |
01 Feb | Federal Territory Day |
18 Mar | Nuzul Al-Quran |
Leave
Leave Type | Entitlement | Notes |
---|---|---|
Annual Leave |
- 8 working days (All staff with 12 months' service) - 12 working days (All staff with over 2 years' service) - 16 working days (All staff with over 5 years' service) |
All staff |
Maternity Leave | 98 consecutive calendar days | Expectant mothers in the private sector |
Paternity Leave | 7 consecutive calendar days | Married fathers with 12 months' service |
Sick/Hospitalisation Leave |
- 14 calendar days (All staff with under 2 years' service) - 18 calendar days (All staff with 2 - 5 years' service) - 22 calendar days (All staff with over 5 years' service) Up to 60 days (for all hospitalized staff) |
All staff |
Reference
- https://www.numbeo.com/cost-of-living/in/Kuala-Lumpur
- https://www.imf.org/en/News/Articles/2023/12/14/pr23448-malaysia-imf-staff-completes-2024-article-iv-mission#:~:text=Inflation%20is%20projected%20to%20moderate,path%2C%20and%20reduce%20fiscal%20risks.
- nhrc.com.my
- https://www.hasil.gov.my/en/individual/individual-life-cycle/how-to-declare-income/tax-rate/
- https://www.kwsp.gov.my/member/overview
- perkeso.gov.my
- https://perkeso.gov.my/perkhidmatan-kami/majikan-pekerja/caruman.html
- https://lom.agc.gov.my/ilims/upload/portal/akta/outputaktap/1741197_BI/Act%20265_FINAL_as%20at%201%20Jan%202023%20(30.3.23).pdf
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Contact UsCountry Guide - Malaysia
Last updated: 29 Apr 2025
Exchange Rate
Currency (MYR)
- 1 CNY = 0.185 MYR
- 1 USD = 1.32 MYR
Other currencies can be retrieved via the country guide link above.
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Labor Cost Calculator
To know the total employer cost for hiring a staff with certain salary, please go to our main site: https://marcopayroll.com
Cost of Living
Indicative value for a working adult in a city: Kuala Lumpur
Publicly available data (Numbeo, etc..), verified by Marco’s in-country staff
Living Requirement | Indicative Amount (MYR) |
---|---|
McDonalds Set Meal | 20 |
Monthly Train and Bus Tickets | 50 |
3 Bedrooms Rental (City Center) | 4,964 |
3 Bedrooms Rental (Outskirt) | 2,712 |
Current Inflation Rate
2.4%
Wage
Minimum Wages
- MYR1,700 per month (depends on the states/regions)
Median Salary
Estimated based on general positions such as HR, Accounting, Admin roles, in tier one cities.
Job Level | Monthly Salary (MYR) |
---|---|
Entry-Level
Fresh Graduate
|
2,500 |
Mid-Level
5 Years
|
4,500 |
Experienced & Managerial Level
10 Years
|
7,000 |
Specialized & Senior-Level
15 Years
|
10,000 |
Annual Salary Growth
5%
Statutory Contribution
Country Level
Type | Employer Rates | Employee Rates | Notes |
---|---|---|---|
Employees Provident Fund (EPF) |
- 13% (for salaries below MYR 5,000) - 12% (for salaries above MYR 5,000) |
11% | All staff |
Injury and Invalidity Scheme (SOCSO) | 1.75%, capped at MYR 104.15 | 0.5%, capped at MYR 29.75 | All local staff and expats, salary up to MYR 6,000 |
Employment Insurance System (EIS) | 0.2%, capped at MYR11.90 | 0.2%, capped at MYR11.90 | All staff and permanent residents aged 18-60, salary capped at MYR6,000 |
Human Resource Development Fund (HRDF) | 1% | - | All staff, required for companies with over 10 staff who are citizens |
Invalidity Scheme (PERKESCO) |
- 1.75% for under 60 years old - 1.25% for above 60 years old - 1.25% for foreign workers |
- 0.05% for under 60 years old. - 0% for above 60 years old and for foreign workers. |
All staff and expats |
Other Benefit
Other common employment benefits in Malaysia include:
- 13th month salary paid at the end of the year
- Hospitalization, Surgical and Medical Benefits: Approximately MYR230 per month.
Income Tax
Residents
-
Tax Period: 1 Jan - 31 Dec of the previous year
Tax filing start date: 1 Mar of the following year
Tax filing due date: 15 May of the following year
Country Level
Taxable Income | Rate |
---|---|
5,000 – 20,000 | 1% |
20,000 – 35,000 | 3% |
35,000 – 50,000 | 6% |
50,000 – 70,000 | 11% |
70,000 – 100,000 | 19% |
100,000 – 400,000 | 25% |
400,000 – 600,000 | 26% |
600,000 – 2,000,000 | 28% |
Over 2,000,000 | 30% |
Non-residents
- Flat rate: 30%
Working Hours
Statutory
45 hours
8 hours Monday to Friday, 5 hours on Saturday
Typical practice
Monday to Friday, 9 am to 6 pm
Overtime
No more than 104 hours per month
- Workdays: 150% of basic salary
- Weekends: 200% of basic salary
- Public Holidays: 300% of basic salary
Employment Contract
Fixed-Term
Probation
Typical practice 3-6 months
Voluntary Resignation | Involuntary Termination | Economic Layoff | |
---|---|---|---|
Notice Period - Probation | 1 day or 30 days, depends on the contract | 30 days | 30 days |
Notice Period - Regular | 30 days | 0 -2 years' service: 4 weeks 2 - 5 years' service: 6 weeks Over 5 years' service: 8 weeks | 0 -2 years' service: 4 weeks 2 - 5 years' service: 6 weeks Over 5 years' service: 8 weeks |
Severance Pay | Not Applicable | For at least 12 months. Calculated as: 1/2-month salary for every year of service | For at least 12 months. Calculated as: 1/2-month salary for every year of service (prorated for partial years) |
Permanent
Probation
Typical practice 3-6 months
Termination
Refer to the employment contract signed
Voluntary Resignation | Involuntary Termination | Economic Layoff | |
---|---|---|---|
Notice Period - Probation | 1 day to 30 days as per contract signed | 30 days | 30 days |
Notice Period - Regular | 30 days | 0 -2 years' service: 4 weeks 2 - 5 years' service: 6 weeks Over 5 years' service: 8 weeks | 0 -2 years' service: 4 weeks 2 - 5 years' service: 6 weeks Over 5 years' service: 8 weeks |
Severance Pay | Not Applicable | For at least 12 months. Calculated as: 1/2-month salary for each year of service (pro-rated for partial years) | For at least 12 months. Calculated as: 1/2-month salary for each year of service (pro-rated for partial years) |
Public Holiday
11 days
Holidays that fall on weekends are observed the Monday after
2025
Date | Name |
---|---|
Leave
Leave Type | Entitlement | Notes |
---|---|---|
Annual Leave |
- 8 working days (All staff with 12 months' service) - 12 working days (All staff with over 2 years' service) - 16 working days (All staff with over 5 years' service) |
All staff |
Maternity Leave | 98 consecutive calendar days | Expectant mothers in the private sector |
Paternity Leave | 7 consecutive calendar days | Married fathers with 12 months' service |
Sick/Hospitalisation Leave |
- 14 calendar days (All staff with under 2 years' service) - 18 calendar days (All staff with 2 - 5 years' service) - 22 calendar days (All staff with over 5 years' service) Up to 60 days (for all hospitalized staff) |
All staff |
Reference
- https://www.numbeo.com/cost-of-living/in/Kuala-Lumpur
- https://www.imf.org/en/News/Articles/2023/12/14/pr23448-malaysia-imf-staff-completes-2024-article-iv-mission#:~:text=Inflation%20is%20projected%20to%20moderate,path%2C%20and%20reduce%20fiscal%20risks.
- nhrc.com.my
- https://www.hasil.gov.my/en/individual/individual-life-cycle/how-to-declare-income/tax-rate/
- https://www.kwsp.gov.my/member/overview
- perkeso.gov.my
- https://perkeso.gov.my/perkhidmatan-kami/majikan-pekerja/caruman.html
- https://lom.agc.gov.my/ilims/upload/portal/akta/outputaktap/1741197_BI/Act%20265_FINAL_as%20at%201%20Jan%202023%20(30.3.23).pdf
Contact Info
-
Singapore (Headquarters)
8 Marina Boulevard, MBFC Tower 1, #11-01, Singapore, 018981
+65 6653 4334 -
China (Headquarters)
79 Jianguo Road, China Central Place Tower 2, #09-52, Beijing, 100025
+86 10 6580 0555 -
China (Service Center)
23 Dagong Street, Eton Place Tower 2, Unit 1808, Dalian, 116001
-
United States
445 S Figueroa St, 31st Floor, Los Angeles, California, 90071
-
United Kingdom
71 - 75 Shelton Street, London, England GB
-
Netherlands
Vijzelstraat 68, 1017 HL, Amsterdam
-
Australia
Level 22, Salesforce Tower, 180 George Street, Sydney, NSW 2000