- Country Guide
- Malaysia
Malaysia
Last Update by Katie, 15 Jul 2024
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Exchange Rate
18 Sep 2024
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
2.7%
Wage
Minimum Wages
- 1,500 MYR 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
|
1,500 |
|
Mid-Level
5 Years
|
3,000 |
|
Experienced & Managerial Level
10 Years
|
6,000 |
|
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% Salaries under 5,000 MYR 12% Salaries over 5,000 MYR 5 MYR for expats |
11% Salaries under or over 5,000 MYR for locals and expats |
All staff aged 18-60 |
| Injury and Invalidity Scheme (SOCSO) |
86.65 MYR Applies to monthly salaries over 5,000 MYR |
24.75 MYR Applies to monthly salaries over 5,000 MYR |
All local staff and expats under 55 |
| Employment Insurance System (EIS) |
0.2% Salary capped at 5,000 MYR |
0.2% Salary capped at 5,000 MYR |
All staff and permanent residents aged 18-60 |
| Human Resource Development Fund (HRDF) | 1% | - | All staff, required for companies with over 10 staff who are citizens |
| Invalidity Scheme (PERKESCO) |
40 SEN - 86.65 MYR On monthly salaries of 30 - over 4,000 MYR |
10 SEN - 24.75 MYR On monthly salaries of 30 - over 4,000 MYR |
All expats under 55 |
Other Benefit
Other common employment benefits in Malaysia include:
- 13th month salary paid at the end of the year
- Hospitalisation, Surgical and Medical Benefits: 230 MYR per month
Income Tax
Residents
-
Tax Period: 1st January - 31st December of the previous year
Tax filing start date: 1st March of the following year
Tax filing due date: 15th 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
48 hours
8 hours a day, 6 days a week
Typical practice
40 hours over 5 days
Monday - Saturday
Overtime
No more than 104 hours per month
- Workdays: 150% of basic salary
- Weekends: 200% of basic salary
- Holidays: 300% of basic salary
Employment Contract
Permanent
Contract Format
Written, in English or Bahasa Malaysia (official language, for public service)
Payroll Currency
MYR
Probation
Typical practice 3-6 months
Contract Period
No minimum duration
Termination
-
Notice for staff and employers during and after probation:
- Under 2 years' service: 4 weeks
- 2 years but under 5 years' service: 6 weeks
- Over 5 years' service: 8 weeks -
Severance:
- 0 - 2 years' service: 10 days pay per year of service
- 2 - 5 years' service: 15 days per year of service
- Over 5 years' service: 20 days pay per year of service
Public Holiday
11 days
Holidays that fall on weekends are observed the Monday after
Country Level
| Date | Name |
|---|---|
| 01 Jan | New Year's Day |
| 10 Feb - 11 Feb | Chinese New Year's Day |
| 28 Mar | Nuzul Al-Quran |
| 10 Apr - 11 Apr | Hari Raya Aidilfitri |
| 01 May | Labor Day |
| 22 May | Wesak Day |
| 03 Jun | Birth of the King |
| 17 Jun - 18 Jun | Islamic Sacrifice Day |
| 07 Jul - 08 Jul | Feast of the Sacrifice (Awal Muharram) |
| 31 Aug | National Day |
| 16 Sep | Malaysia Day |
| 31 Oct - 12 Nov | Festival of Lights (Deepavali) |
| 25 Dec | Christmas Day |
State/Province Level
Negeri Sembilan
| Date | Name |
|---|---|
| 15 Jan | YDPB Negeri Sembilan's Birthday |
| 08 Feb | Israk and Mikraj |
Leave
| Leave Type | Entitlement | Notes |
|---|---|---|
| Annual Leave |
8 working days 12 working days 16 working days |
All staff with 12 months' service All staff with over 2 years' service All staff with over 5 years' service |
| 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 18 calendar days 22 calendar days Up to 60 days |
All staff with under 2 years' service All staff with 2 - 5 years' service All staff with over 5 years' service: 22 days All hospitalised 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: 15 Jul 2024
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
2.7%
Wage
Minimum Wages
- 1,500 MYR 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
|
1,500 |
|
Mid-Level
5 Years
|
3,000 |
|
Experienced & Managerial Level
10 Years
|
6,000 |
|
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% Salaries under 5,000 MYR 12% Salaries over 5,000 MYR 5 MYR for expats |
11% Salaries under or over 5,000 MYR for locals and expats |
All staff aged 18-60 |
| Injury and Invalidity Scheme (SOCSO) |
86.65 MYR Applies to monthly salaries over 5,000 MYR |
24.75 MYR Applies to monthly salaries over 5,000 MYR |
All local staff and expats under 55 |
| Employment Insurance System (EIS) |
0.2% Salary capped at 5,000 MYR |
0.2% Salary capped at 5,000 MYR |
All staff and permanent residents aged 18-60 |
| Human Resource Development Fund (HRDF) | 1% | - | All staff, required for companies with over 10 staff who are citizens |
| Invalidity Scheme (PERKESCO) |
40 SEN - 86.65 MYR On monthly salaries of 30 - over 4,000 MYR |
10 SEN - 24.75 MYR On monthly salaries of 30 - over 4,000 MYR |
All expats under 55 |
Other Benefit
Other common employment benefits in Malaysia include:
- 13th month salary paid at the end of the year
- Hospitalisation, Surgical and Medical Benefits: 230 MYR per month
Income Tax
Residents
-
Tax Period: 1st January - 31st December of the previous year
Tax filing start date: 1st March of the following year
Tax filing due date: 15th 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
48 hours
8 hours a day, 6 days a week
Typical practice
40 hours over 5 days
Monday - Saturday
Overtime
No more than 104 hours per month
- Workdays: 150% of basic salary
- Weekends: 200% of basic salary
- Holidays: 300% of basic salary
Employment Contract
Fixed-Term
Probation
Typical practice 3-6 months
Termination
-
Notice for staff and employers during and after probation:
- 0 -2 years' service: 4 weeks
- 2 - 5 years' service: 6 weeks
- Over 5 years' service: 8 weeks -
Severance:
- Only for staff earning below 4,000 MYR
- 0 - 2 years' service: 10 days pay per year of service
- 2 - 5 years' service: 15 days per year of service
- Over 5 years' service: 20 days pay per year of service
Permanent
Probation
Typical practice 3-6 months
Termination
-
Notice for staff and employers during and after probation:
- Under 2 years' service: 4 weeks
- 2 years but under 5 years' service: 6 weeks
- Over 5 years' service: 8 weeks -
Severance:
- 0 - 2 years' service: 10 days pay per year of service
- 2 - 5 years' service: 15 days per year of service
- Over 5 years' service: 20 days pay per year of service
Public Holiday
11 days
Holidays that fall on weekends are observed the Monday after
2024
| Date | Name |
|---|---|
2025
| Date | Name |
|---|---|
Leave
| Leave Type | Entitlement | Notes |
|---|---|---|
| Annual Leave |
8 working days 12 working days 16 working days |
All staff with 12 months' service All staff with over 2 years' service All staff with over 5 years' service |
| 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 18 calendar days 22 calendar days Up to 60 days |
All staff with under 2 years' service All staff with 2 - 5 years' service All staff with over 5 years' service: 22 days All hospitalised 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