Malaysia

Last Update by Federico, 29 Apr 2025

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Exchange Rate

18 Jul 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
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

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