Overview
Capital
Kuala LumpurCurrency
RinggitDate Format
dd-mm-yyyy 
Public holidays calendar
Taxes
Employer
12.00% - 13.00% - EPF (Retirement Benefits)
1.75% - Socso - Disability Benefits
0.05% - 7.90% - EIS (Employment Insurance)
1.75% - Socso - Disability Benefits
0.05% - 7.90% - EIS (Employment Insurance)
Employee
11.00% - 5.50% - EPF (Retirement Benefits)
0.50% - Socso - Disability Benefits
0.00% - Up to 5,000
1.00% - 5,000 - 20,0000
3.00% - 20,000 - 35,000
8.00% - 35,000 - 50,000
14.00% - 50,000 - 70,000
21.00% - 70,000 - 100,000
24.00% - 100,000 - 250,000
24.50% - 250,000 - 400,000
25.00% - 400,000 - 600,000
26.00% - 600,000 - 1,000,000
28.00% - Over 1,000,000
0.50% - Socso - Disability Benefits
0.00% - Up to 5,000
1.00% - 5,000 - 20,0000
3.00% - 20,000 - 35,000
8.00% - 35,000 - 50,000
14.00% - 50,000 - 70,000
21.00% - 70,000 - 100,000
24.00% - 100,000 - 250,000
24.50% - 250,000 - 400,000
25.00% - 400,000 - 600,000
26.00% - 600,000 - 1,000,000
28.00% - Over 1,000,000
Minimum Wage
General
The minimum wage is RM1050 monthly.
Paid Time Off
Vacation days
Employees of less than 2 years receive 8 days leave annually, from 2-5 years receive 12 days, and after 5 years entitlement is 16 days.
Sick days
Employees of under two years receive 14 days sick leave. From 2-5 workers receive 18 days, and from the 5th year forward receive 22 days leave.
* Employees who have been hospitalized are entitled to 60 days leave.
Maternity Leave
60 days maternity leave.
Paternity Leave
No specific laws.
Parental Leave
No specific laws.
Working Hours
General
Fulltime employmetn is considered 48 hours weekly, and 8 hours daily.
Overtime
Maximum overtime hours monthly is 104.
Overtime is paid at 150% for normal workdays, 200% on rest days, 300% on public holidays.
VAT
General
The VAT is 6% standard rate.
Payment
Payroll Frequency
Salaries are paid monthly for work between the first and last day of the month. Paydays are decided between the employee and employer, but are typically at the end of the month.
Mandatory Benefits
Pension Fund
Employers contribute 12% of employees wages. Employee contribute 11% of their wages.
Social Security
0.5% of monthly payroll, according to 24 wage classes.
There are no minimum monthly earnings used to calculate contributions (for the lowest wage class of under 30 ringgits, the contribution is based on 20 ringgits).
The maximum monthly earnings used to calculate contributions are 3,000 ringgits.
Termination
Termination Process
Employers must provide:
* Four weeks notice for employees of up to two years.
* Six weeks notice for employees of two to five years.
* Eight weeks notices for employees of five or more years.
Advance Notice
Advance notice is one month.
Severance Pay
Severance payments depend on length of employment:
* 1-2 years: 10 days wage for every year.
* 2-5 years: 15 days wage for every year.
* 5+ years: 20 days wage for every year.
