HR & Payroll Management Services in Malaysia
Malaysian payroll compliance requires accurate statutory calculations, timely submissions to multiple government bodies, and careful adherence to the Employment Act 1955. We take care of your human capital requirements and payroll obligations in full, from the moment you hire your first employee to the management of your growing team.
For foreign companies looking to hire Malaysian talent or deploy expatriates without the immediate capital and time investment of incorporating a local Sdn Bhd, our Employer of Record (EOR) model provides an immediate, compliant market entry mechanism.
Legal Employment & Statutory Administration
Under the EOR structure, we act as the legal employer of your staff in Malaysia. We assume full administrative liability, which includes drafting compliant employment contracts, processing monthly payroll, and remitting all mandatory statutory contributions (EPF, SOCSO, EIS, and PCB/MTD).
Functional & Operational Control
While we manage the legal, tax, and regulatory employment risks, your company retains absolute functional control over the employee. You direct their day-to-day work, manage their performance, and define your core business strategy.
Crucial Compliance Link: Deploying foreign talent via our EOR model bypasses the need for immediate Business Licensing (such as WRT) and fast-tracks the Expatriate & Immigration process, as we utilize our established corporate profile to sponsor the necessary Employment Passes.
Looking to hire in Malaysia without setting up a local entity?
Consult our EOR SpecialistStatutory Body Registrations
Before a company can run its first payroll in Malaysia, it must register with the relevant statutory bodies. We handle all mandatory registrations as a single, coordinated exercise:
- EPF / KWSP (Employees Provident Fund) — mandatory retirement contributions for employees.
- SOCSO / PERKESO (Social Security Organisation) — social security protection for employees.
- EIS / SIP (Employment Insurance System) — mandatory unemployment insurance contributions for private-sector employees.
- IRB / LHDN — Employer Tax File (E Number) & CP39 Registration — initial employer tax file setup and subsequent income tax withholding registration.
- HRD Corp (formerly HRDF) — mandatory for employers with 10 or more Malaysian employees.
Setting up your first payroll in Malaysia?
Request Statutory Setup AssistanceMonthly Payroll Processing & Payslips
We manage your company's full monthly payroll cycle, including processing of basic salaries, overtime, allowances, and deductions. Our deliverables each month include:
- Monthly payroll report (detailed breakdown by employee).
- Individual payslips for each employee.
- Statutory deduction summaries (EPF, SOCSO, EIS, PCB/MTD).
- Net pay transfer instructions.
Statutory Calculations & Submissions
We calculate and submit all mandatory contributions to the relevant statutory bodies on your behalf each month:
- EPF contribution calculations (employer and employee portions) and payment coordination.
- SOCSO and EIS contributions and payment coordination.
- Monthly Tax Deduction (PCB / MTD) calculation and submission to IRB/LHDN via CP39.
- HRD Corp levy calculation and coordination.
Annual EA & E Form Preparation
Each year, Malaysian employers are required to submit EA Forms (to each employee) and the E Form (to IRB) summarising employee earnings and tax deductions for the year. We prepare and file both on your behalf.
Ready to streamline your monthly payroll processing?
Get a Payroll Outsourcing QuoteEmployment Contracts
We draft employment contracts tailored to your business and compliant with the Employment Act 1955 and its 2022 amendments, covering both local and expatriate employees. Contracts are customised to reflect your company's specific probationary periods, benefits, working hours, and termination provisions.
HR Policy & Employee Handbooks
Clear internal policies prevent external disputes. We draft comprehensive Employee Handbooks detailing company rules, code of conduct, statutory and non-statutory leave entitlements, and grievance procedures in strict adherence to current Malaysian labour laws.
Performance & Termination Advisory
Navigating employee dismissals in Malaysia requires strict procedural fairness. We provide structured guidance on executing Performance Improvement Plans (PIPs), conducting domestic inquiries for misconduct, and executing lawful termination procedures to mitigate the risk of costly unfair dismissal claims at the Industrial Court.
Need expert advice on Malaysian employment law or contracts?
Consult Our HR Advisory Team