EOR in Malaysia
Employer of Record in Malaysia
- Save upto 3% on your payroll cost
- Hire Malaysian talent without setting up a local entity
- Streamline payroll, EPF, SOCSO, and tax compliance management
- Mitigate permanent establishment risks and legal exposure
- Onboard employees rapidly with compliant employment agreements
- Achieve cost-effective market entry with transparent, competitive pricing
Happy Customers Globally
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Currency
Malaysian Ringgit (MYR)
Capital
Kuala Lumpur
Official Language
Malay (Bahasa Malaysia)
Payroll Cycle
Monthly
Recognized Globally: Ranked #1 for ‘Ease of Use’ & ‘Customer Support’
our advantage
Why Choose Asanify's EOR in Malaysia
Asanify is ranked #1 across multiple categories on G2, providing businesses with a trusted Employer of Record solution in Malaysia. We eliminate the complexity of entity formation and ensure full compliance with Malaysia’s Employment Act, EPF, SOCSO, and tax regulations, enabling you to focus on growing your team and business operations.
Fast and Compliant Hiring
Deploy employees in Malaysia within days. Asanify prepares employment contracts that comply with the Employment Act 1955 and related regulations, ensuring legal protection and allowing you to build your Malaysian team quickly and confidently.
End-to-End Payroll Management
We handle monthly payroll processing in Malaysian Ringgit, including income tax withholding (PCB), EPF (Employees Provident Fund) contributions, SOCSO (Social Security Organisation) payments, and EIS (Employment Insurance System) deductions, ensuring accurate and timely compensation.
Full Regulatory Compliance
Stay compliant with Malaysia's complex employment regulations, including the Employment Act 1955, EPF Act, SOCSO Act, and tax laws. Asanify manages all statutory filings, contributions, and legal obligations, minimizing your exposure to penalties and compliance risks.
Local HR Expertise
Access dedicated support from our Malaysian HR specialists who provide expert guidance on employment practices, benefits administration, leave policies, and regulatory updates, ensuring smooth and compliant workforce management.
How Asanify's Employer of Record Works in Malaysia
Asanify acts as the legal employer of record for your Malaysian employees, taking on all administrative, legal, and compliance responsibilities while you maintain full control over their work activities and performance management.
- Instant Market Access: Hire in Malaysia without establishing a Sdn Bhd or branch office
- Complete Compliance Coverage: We ensure adherence to the Employment Act, EPF, SOCSO, EIS, and tax regulations
- Operational Freedom: You manage daily work while we handle contracts, payroll, and statutory obligations
Trusted by top companies around the Globe
Employer of record
Employment Compliance in Malaysia
Malaysia’s employment framework is primarily governed by the Employment Act 1955, covering employment terms, wages, working hours, rest days, leave entitlements, and termination procedures. Asanify ensures full compliance with all statutory requirements including monthly PCB (income tax) deductions, EPF contributions (13% employer, 11% employee), SOCSO payments, EIS contributions, and mandatory employee benefits administration.
- PCB income tax withholding and monthly remittance to LHDN
- EPF, SOCSO, and EIS statutory contributions and compliance
- Employment contracts aligned with the Employment Act 1955
What our happy customers say
Asanify's, should be the number 1 choice for companies looking to pay their overseas employees and contractors. I have a team of 40 people in India and not for a single month have i experienced any delays in the payment process.
In my business, things happen fast, and requirement for new employees is sudden. In such a situation a trusted partner like Asanify comes in handy as I know I can quickly ramp with onboarding and employee formalities diligently taken care of.
As a global company, we go through M&As in countries where we do not have presence. In India, we quickly onboarded ~30 employees as part of a takeover. With Asanify's turnaround time the overall change was managed brilliantly.
Asanify’s expertise when it comes to Local Compliances is something I have benefitted extensively from. Whether its Employee-Contractor classification, or the local laws for employee benefits and working hours - I trust the guidance provided.
Apart from using EOR services, I find a lot of value in the fully automated Asanify HRMS. For me, it makes it absolutely comfortable that I can access all my HR inforation anytime, anywhere and on any platform - Slack, Whatsapp etc.
My employees are in India, while I am based in Dubai and the co. in the US. Managing time zones is a huge challenge for us. Working with global partners like Asanify ensures that all my payments, and query resolutions are done in time.
It is paramount that my employees are well taken care of. Asanify goes above and beyond In terms of employee benefits, salary structuring to make it more tax friendly and constant guidance. For over a year with Asanify’s EOR, I have had no reason to feel disappointed.
Employer of Record FAQs in Malaysia
What is an Employer of Record in Malaysia?
An Employer of Record (EOR) in Malaysia is a third-party organization that becomes the legal employer of your workforce, handling all employment-related responsibilities including contracts, payroll, tax compliance, EPF, SOCSO, and EIS contributions. You retain complete control over employees’ work assignments, performance, and daily operations while the EOR manages legal and administrative obligations.
How quickly can I hire employees in Malaysia using an EOR?
With Asanify’s EOR service, you can onboard employees in Malaysia within 5-7 business days. We manage contract preparation, EPF and SOCSO registration, tax file setup, and all compliance documentation, enabling you to start working with your new team members immediately without entity registration delays.
What are the mandatory benefits for employees in Malaysia?
Mandatory benefits in Malaysia include EPF contributions (24% combined—13% employer, 11% employee), SOCSO coverage, EIS contributions, annual leave (minimum 8-16 days depending on service), sick leave, maternity leave (60 days), paternity leave (7 days), and public holiday entitlements. Asanify ensures full compliance with all statutory benefit requirements.
How does payroll taxation work in Malaysia?
Malaysia uses the Monthly Tax Deduction (MTD/PCB) system where employers withhold income tax from employees’ salaries based on progressive tax rates (0% to 30%). Employers must remit these deductions monthly to the Inland Revenue Board (LHDN). Asanify handles all tax calculations, withholdings, and remittances on your behalf.
Do I need to establish a legal entity in Malaysia to hire employees?
No, using an Employer of Record eliminates the need to incorporate a Sdn Bhd (private limited company) or establish a branch office in Malaysia. Asanify serves as the legal employer, allowing you to hire Malaysian talent immediately while we handle all registration, compliance, and administrative requirements.
What is the notice period for termination in Malaysia?
Notice periods in Malaysia vary based on the employee’s length of service and are typically specified in the employment contract. Under the Employment Act 1955, notice periods range from 4 weeks to 8 weeks. Asanify ensures all terminations comply with statutory requirements and manages severance calculations when applicable.
Can I hire both permanent and contract employees through an EOR?
Yes, Asanify’s EOR solution supports hiring both permanent employees and fixed-term contract workers in Malaysia. We ensure all employment arrangements comply with Malaysian labor laws, properly classify workers, and manage the different statutory obligations for each employment type.
What is the standard probation period in Malaysia?
The standard probation period in Malaysia is typically 2-3 months, though it can extend to 6 months for senior positions. During probation, shorter notice periods apply (usually 1-2 weeks). Asanify structures probationary terms that comply with the Employment Act while meeting your business objectives.
How does Asanify ensure compliance with Malaysian labor laws?
Asanify maintains a dedicated team of Malaysian HR and legal experts who continuously monitor regulatory changes, manage EPF and SOCSO filings, ensure accurate PCB compliance, maintain proper employment documentation, and implement updates to employment practices. We provide comprehensive protection against compliance risks, audits, and penalties.
Start Hiring in Malaysia Today
Expand into Malaysia seamlessly with Asanify’s compliant EOR solution and build your team efficiently.