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Malaysia

Malaysia

Your quick guide on talent and labor compliance norms in Malaysia

(The data below is for reference only. You may refer to the official government websites or contact us for updates.)

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CapitalKuala Lumpur (administrative capital: Putrajaya)
CurrencyMalaysian Ringgit (MYR, RM)
LanguagesMalay (Bahasa Malaysia); English widely used in business
Payroll FrequencyMonthly; wages payable within 7 days of the end of the wage period.
GDP per Capitaapprox. $13,000 (2025, IMF estimate)
Employer Tax~14–15%
CapitalKuala Lumpur (administrative capital: Putrajaya)
CurrencyMalaysian Ringgit (MYR, RM)
LanguagesMalay (Bahasa Malaysia); English widely used in business
Payroll FrequencyMonthly; wages payable within 7 days of the end of the wage period.
GDP per Capitaapprox. $13,000 (2025, IMF estimate)
Employer Tax~14–15%

Talent Landscape Analysis

Malaysia is an upper-middle-income, trade-oriented economy with strong electrical & electronics manufacturing, semiconductors, oil & gas and a growing services and digital sector. The workforce is multilingual and cost-competitive.

Major economic Cities

Kuala Lumpur, Penang (George Town), Johor Bahru, Shah Alam/Petaling Jaya, Kuching.

Skills in demand

Semiconductor and E&E engineering, software and data/AI, cybersecurity, shared-services/finance, and digital/e-commerce roles are in strong demand.

Malaysia map

Salary Data

The table below mentions the average salary data in Malaysia:

Employing in Malaysia

Knowing the labor laws in the Malaysia is the first step to employing local employees in the country. Additionally, the employers must have information about bonuses, leaves, and allowances. Below are some areas that employers must delve into before taking in employees.

Employee Contract
Leave Policy
Payroll
Taxes
Offboarding & Termination
Visa and Immigration
Employee Contract

Basic

 

Contracts in Malaysia must be written in English. The employer must mention all descriptions, job roles, bonuses, allowances, and leaves in the contract.

 

Probation Period

 

A 90-day probation period is the most common type of probation period used by employers. However, it's not uncommon to see shorter timeframes, such as 30 or 60-day probation periods as well as longer periods ranging from 6 to 12 months.

 

13th Month Pay

 

In Malaysia, a 13th month pay is not mandatory. Although, it is customary to provide a 13th month pay at the end of the year.

 

Employee Benefits

 

Employers in Malaysia may provide the following benefits to their employees:

  • Medical insurance.
  • Life insurance.
  • Disability insurance.
  • Retirement contributions and pension plans.

 

Employee Contract

Basic

 

Contracts in Malaysia must be written in English. The employer must mention all descriptions, job roles, bonuses, allowances, and leaves in the contract.

 

Probation Period

 

A 90-day probation period is the most common type of probation period used by employers. However, it's not uncommon to see shorter timeframes, such as 30 or 60-day probation periods as well as longer periods ranging from 6 to 12 months.

 

13th Month Pay

 

In Malaysia, a 13th month pay is not mandatory. Although, it is customary to provide a 13th month pay at the end of the year.

 

Employee Benefits

 

Employers in Malaysia may provide the following benefits to their employees:

  • Medical insurance.
  • Life insurance.
  • Disability insurance.
  • Retirement contributions and pension plans.

 

Leave Policy

Public and Provincial Holidays

Leave Information

Payroll

Taxes

Offboarding & Termination

Visa and Immigration

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