Malaysia

Last Update by Katie, 10 Jun 2024

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Exchange Rate

13 Jun 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 under5,000 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
Worker Social Security (SOCSO) 1.75%
Salary capped at 5,000 MYR
0.5%
Salary capped at 5,000 MYR
All staff aged 18-60
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 10+ staff who are citizens

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

Probation

3 - 6 months

Termination

  • Notice period:
    - Under 2 years' service: 4 weeks
    - 2 years but under 5 years' service: 6 weeks
    - Over 5 years' service: 8 weeks
  • Severance:
    - 2-5 years' service: 15 days' pay for every year
    - Over 5 years' service: 20 days' pay for every year

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

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